Panel concludes former mutual funds salesman committed misconduct

Diane
Diane Crocker
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A Mutual Fund Dealers Association of Canada hearing panel has concluded that a former mutual funds salesman from Corner Brook committed misconduct in his dealings with six clients.

George Pretty. — TC Media file photo

In its Decision and Reasons (Misconduct) report issued on Jan. 30, the panel found that Arthur George Pretty violated the bylaws, rules and policies of the association in three incidents.

The first allegation was that between March 2005 and July 2008, Pretty recommended and facilitated a leveraged investment strategy for at least six clients without performing the necessary due diligence to learn the essential

facts relative to the clients, and without ensuring that the leveraged investment strategy was suitable for the clients and in keeping with the clients’ investment objectives.

The second is that between March 2005 and July 2008, Pretty misrepresented or failed to adequately explain the benefits, risks, material assumptions and features of a leveraged investment strategy and its underlying investments to at least six clients, thereby failing to present the leveraged investment strategy to the clients in a fair and balanced manner.

And finally, that starting Sep. 14, 2010, Pretty failed to comply with multiple requests to provide a written statement to the association in response to client complaints and to attend at an interview requested by the association during the course of the investigation.

The three-person panel of the association’s Atlantic Regional Council who heard the case against Pretty concluded a disciplinary hearing into the alleged misconduct in October.

Now that the panel has determined Pretty committed misconduct it still has to decide what penalty he’ll face.

Pretty could be barred from being licensed as a mutual funds dealer and the association could levy fines against him.

A date to hear submissions with respect to penalty has not yet been set.

 

The Western Star

Organizations: Atlantic Regional Council

Geographic location: Western Star

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Recent comments

  • John
    February 03, 2014 - 07:48

    If he is former mutual fund sale person than there are no consequences from a licensing point of view. They may fine him but that will be it. Civil suit will be covered off by insurance.