A former Manulife Securities International Ltd. mutual fund salesperson has been fined $40,000 by the Mutual Fund Dealers Association of Canada related to the recommendation of investments that hadn’t been approved by the firm.

At a settlement hearing in Toronto on Wednesday, an MFDA hearing panel approved a settlement with David Irwin, who was registered in Ontario as a mutual fund salesperson with Manulife from 2000 to 2005.

The MFDA found that in 2004, Irwin engaged in outside securities-related business through Manulife’s facilities by making referrals in respect of the sale of approximately US$805,000 of Lighthouse Pointe Limited Partnership units to 24 clients. These investments had not been approved for sale by Manulife, and Irwin failed to disclose to the firm that he had made these referrals, the MFDA said.

Irwin said he had an oral referral arrangement with the promoter of the Lighthouse LPs. He received compensation of at least US$161,100 for the referral activities, according to the MFDA.

In 2001, Manulife had distributed a policy stating that mutual fund salespersons were not permitted to participate in activities involving limited partnerships “without specific applicable licensing/registration or company approval”.

Irwin failed to comply with these policies and procedures, the MFDA said.

As part of the settlement, Irwin has been fined $40,000, and ordered to pay $1,000 in costs.

He is also prohibited from conducting securities related business while employed by or associated with any MFDA member for a period of five years. This excludes securities related business which Irwin may engage in with any entity which is not an MFDA member.

Irwin is currently registered in Ontario with Becksley Capital Inc., a limited market dealer.

IE