A Mutual Fund Dealers Association of Canada (MFDA) hearing panel has ordered that former fund rep David Hamilton Cudmore be banned permanently from the investment industry, fined $125,000 and ordered to pay costs of $7,500, following a disciplinary hearing that concluded he failed to co-operate with an MFDA investigation.
The MFDA brought the allegation against Cudmore, who was a mutual fund rep with Quadrus Investment Services Ltd. and dually licensed as an insurance agent with London Life Insurance Co. in Charlottetown, P.E.I., after he was terminated by those firms, but failed to respond to the self-regulatory organization’s subsequent efforts to investigate.
According to the regulator’s allegations, both Quadrus and London Life terminated Cudmore following accusations that he was “engaged in irregular and potentially unethical business practices.” Once the MFTDA was informed about the termination in June 2015, it tried to launch its own investigation. However, the MFDA reports that Cudmore never responded to those efforts.
“To date, the respondent has failed to provide staff with a written statement responding to staff’s requests for information concerning his knowledge of matters that were under investigation and has failed to attend an interview with staff to give information concerning his knowledge of matters under investigation, thereby failing to co-operate with staff’s regulatory investigation,” the MFDA said in its notice of hearing against him.