ASC rejects mutual fund rep’s appeal of MFDA discipline

The Alberta Securities Commission (ASC) has denied a former mutual fund representative’s appeal of a disciplinary decision against him by the Mutual Fund Dealers Association of Canada (MFDA).

A former rep with Sun Life Financial Investment Services (Canada) Inc., Daniel Phillipus Botha, was sanctioned by an MFDA hearing panel in 2019, after it found he violated MFDA rules by using pre-signed or altered forms, and submitting limited trading authorization forms that hadn’t been properly witnessed or didn’t meet signature verification requirements.

Botha was fined $15,000 and ordered to pay costs of $6,000.

Botha appealed the hearing panel’s decision to the ASC, seeking to set aside its findings on one of the allegations and to overturn the penalties, arguing that the panel erred by relying on inadequate evidence, among other things.

However, the ASC upheld the MFDA hearing panel’s decision, ruling that there were reasonable grounds to find the evidence reliable.

“We conclude that it was reasonable for the hearing panel to have determined that registrants employed by MFDA members are expected to inform themselves of all rules, regulations, policies and procedures that apply to them,” the ASC panel said.

Given the it upheld the findings of the MFDA on the case’s merits, the ASC also dismissed the appeal on sanctions.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.