Calgary advisor had undisclosed potential conflicts, says MFDA

The MFDA has disciplined Calgary FundEX advisor Sharon June Fauth for carrying on other jobs without telling her employer.

Fauth and the MFDA agreed to a statement of facts before her hearing October 26. She admitted to facts constituting contraventions of MFDA by-laws, rules or policies. The MFDA hearing covered Fauth’s conduct between 2003 and 2014, when she also worked for Worldsource Financial Management and IQON Financial.

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Fauth admitted that she:

a) had and continued in other gainful occupations that were not disclosed to or approved by the Member, in respect of her activities relating to Fairwest, Espoir, Keylink (also known as 1555989), and 1555986, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)), 2.4.2, and 2.1.1; and

b) failed to disclose conflicts or potential conflicts of interest to the Member and ensure the conflicts were addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rule 2.1.4 and 2.1.1.

Following submissions from the parties with respect to penalty, the hearing panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:

a fine in the amount of $20,000;
a suspension from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of three (3) years, commencing from the date of the Hearing Panel’s Order; and
costs in the amount of $5,000.

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