Maybe it is better to "go quietly into that good night" after all. A provincial regulator has upheld a lifetime ban and fines against a mutual fund dealer, scolding her for unnecessarily dragging out the appeals process instead of taking her lumps.
Maybe it is better to go quietly into that good night after all. A provincial regulator has upheld a lifetime ban and fines against former mutual fund dealer Marlene Legare, scolding her for unnecessarily dragging out the appeals process instead of taking her lumps.
“This case involved relatively simple facts but was protracted by multiple applications and delays instigated by Legare,” the British Columbia Securities Commission (BCSC) said in its ruling. “The hearing panel demonstrated considerable patience in dealing with Legare, and exercised its powers judiciously and made extraordinary efforts to accommodate her.”
The BCSC panel upheld an earlier decision by a Mutual Fund Dealers Association (MFDA) hearing panel that Legare broke MFDA conflict-of-interest rules and failed to cooperate with the MFDA investigation.
“As documented in the transcripts, the hearing panel issued carefully considered rulings after reviewing Legare’s applications. Its written findings and penalty decision were similarly measured and comprehensive. In our opinion, the MFDA’s findings were reasonable,” the BCSC ruling said.
On October 29, 2010, the MFDA panel found that Legare, a registered mutual fund salesperson, had from January 1991 until July 2006, breached conflict of interest rules by borrowing $49,650 from a client. She also failed to cooperate with MFDA staff’s subsequent investigation. The alleged misconduct took place between November 2005 and June 2006.
The MFDA panel issued its penalty decision on July 18, 2011, permanently banning Legare from selling funds, fining her $75,000 and requiring her to pay costs of $10,000. Legare objected and asked the BCSC commission to review the MFDA decision. The commission held its review on June 13.