A hearing panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada has fined a London’, Ont. branch manager $10,000 for failing to perform his supervisory duties.

The panel held a hearing Toronto on Dec. 1, 2009 at which it approved a settlement agreement between Donald James Cunningham and MFDA.

Cunningham admitted that between June 2003 and September 2005, he failed to fulfill his supervisory responsibilities as branch manager of the London, Ont. branch of Desjardins Financial Security Investments Inc., and he failed to employ adequate supervision to prevent Anthony McPhail, an unregistered individual, from engaging in securities related business with clients of Desjardins.

Cunningham further admitted that between January 2004 and November 2004, he failed to conduct reasonable supervisory investigations in response to information that McPhail was engaging in securities related business with clients of Desjardins and to take such supervisory and disciplinary measures as might be warranted by the results of such investigations.

As a consequence of the approved settlement, Cunningham:

• paid a $10,000 fine and $2,500 in costs;
• was permanently prohibited from being registered or acting in any supervisory capacity for an MFDA member firm;
• was permanently prohibited from being registered or acting as a partner, director or senior officer of an MFDA member firm; and
• shall not hold himself out to members of the public as the “Managing Director” of the London branch of Desjardins Financial Security Investments Inc. in respect of mutual fund business.

IE