A hearing panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada has issued its Reasons for Decision in connection with a disciplinary hearing held in Calgary, Alberta on October 26, 2016 in the matter of Sharon June Fauth.

In its Reasons for Decision, dated January 20, 2017, the hearing panel confirmed the sanctions imposed on the respondent. Those are:

  • 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.

The Reasons for Decision also lays out the following allegations, to which the respondent admitted.

Allegation #1: Between October 2003 and January 2014, the respondent had and continued in other gainful occupations that were not disclosed to or approved by the Member, in respect of the Respondent’s activities relating to Fairwest Energy Corporation, Espoir Capital Corporation, Keylink Enterprises Inc. (also known as 1555989 Alberta Ltd.), and 1555986 Alberta Ltd., contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d), 2.4.2 and 2.1.1).

Allegation #2: Commencing no later than February 22, 2012, the respondent knew or ought to have known that clients had invested in Fairwest Energy Corporation and Espoir Capital Corporation, thereby creating a conflict or potential conflict between the interests of the respondent and the interests of the clients which the respondent failed to disclose to the Member and ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1.

During the period described in the Reasons for Decision, the respondent carried on business in Calgary, Alberta.