The Nova Scotia Securities Commission (NSSC) has rejected a fund representative’s bid to overturn a Mutual Fund Dealers Association of Canada (MFDA) enforcement decision on the basis that he hadn’t intended to admit to any misconduct.
The NSSC denied an application from Gregory Burke, a rep with Equity Associates Inc., for a review of an MFDA hearing panel decision against him.
The panel fined Burke $10,000 and ordered $5,000 in costs, after finding that he violated MFDA rules by sending a misleading communication to seven clients.
According to the NSSC ruling, Burke sought to vacate the MFDA’s decision and to be granted a new hearing “on the basis that Burke had not intended to admit to violations of the MFDA rules and waive his right to a hearing regarding the violations.”
He argued that the MFDA decisions against him were unjust because the hearing panel “proceeded on the mistaken understanding that Burke had intended to admit the breach.”
Yet, after its hearing on the case, the NSSC concluded that “Burke has not established a basis for the commission to intervene in the MFDA decision.”
In its ruling, the commission said that it’s up to respondents in enforcement proceedings to speak up if they aren’t being properly represented at a hearing.
“The finality of an agreement signed by a respondent and accepted or approved by a securities regulator at a hearing is important for ensuring the integrity, stability and efficiency of the securities regulatory system,” it said.
“If, at an enforcement hearing, the respondent realizes that the information being presented to the hearing panel is not accurate or the respondent does not understand the proceeding, it is incumbent upon them to make the hearing panel aware of this before the panel makes its final decision,” it said.
As a result, the NSSC concluded that the MFDA acted appropriately in making its decision, and it dismissed Burke’s application.