The Mutual Fund Dealers Association today filed two more notices of hearing, commencing disciplinary proceedings, against former mutual fund sales persons.

The MFDA issued a notice against Saskatchewan rep Arnold Tonnies alleging that:

  • in July 2002, he borrowed $250,000 from two clients to finance his outside business activity as a cattle farmer, placing his personal interests above those of his clients and giving rise to an actual or potential conflict of interest;
  • he failed to abide by the policies and procedures set out by his dealer regarding conflicts of interest; and
  • in December 2003, he failed to produce documents requested by the MFDA.

At the time, Tonnies was registered as a fund salesperson with TWC Financial Corp.

None of these allegations have been proven. A hearing panel of the Prairie Regional Council of the MFDA will meet on March 22 to set a date for a hearing.

The MDFA announced that it has commenced disciplinary proceedings against Jawad Rathore, alleging that:

  • between August and November 2002, he engaged in an occupation outside the business of the dealer without the firm’s approval; and
  • he failed to produce documents requested by the MFDA.

At the time, Rathore was registered in Ontario as a rep with Independent Planning Group Inc.

These allegations haven’t been proven either. The first hearing is scheduled for March 23.