A mutual fund rep has been fined and banned from the industry after misappropriating more than $400,000 from several clients, among other violations.
A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) ordered that Christopher John Davies, a former rep with Royal Mutual Funds Inc. in southwestern Ontario, is permanently banned, fined $709,252 and ordered to pay $20,000 in costs.
According to an agreed statement of facts, Davies admitted to several violations of MFDA rules, including that he misappropriated $434,252 from four clients, engaged in unapproved outside business activity and personal financial dealings with clients, and misled the firm’s investigators.
The only issues for the panel to decide were whether he failed to cooperate with the MFDA’s investigation in the case, and the penalties.
The clients, including a couple of elderly retirees, were compensated by affiliates of the firm.
Based on his admissions, and after hearing submissions on penalties, the panel imposed sanctions.
It said that its written reasons will be issued in the future.