A hearing panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada has substantiated three allegations of improper conduct by a fund salesman at TWC Financial Corp. in Saskatchewan.

At the hearing, which was held Monday, May 16, in Regina, the panel heard:

  • in or around July 2002, Arnold Tonnies borrowed $250,000 from two clients to finance his outside business activity as a cattle farmer, thereby placing his personal interests above those of his clients and giving rise to an actual or potential conflict of interest;
  • in or around July 2002, Tonnies failed to abide by the policies and procedures set out by TWC Financial regarding conflicts of interest by borrowing money from two clients to finance his outside business activity as a cattle farmer; and
  • commencing in or around December 2003, Tonnies failed to produce for inspection and provide copies of documents requested by the MFDA for the purpose of investigating a complaint made against him.



In a statement, the Hearing Panel said it would issue written reasons and its decision on appropriate sanction in due course.