Motion To Strike MFDA Notice Of Hearing

Edited by David Di Paolo

On May 8, 2012, an MFDA Hearing Panel of the Atlantic Regional Counsel (the "Panel") released its reasons on what was essentially a motion to strike a Notice of Hearing issued by the Mutual Fund Dealers Association ("MFDA") against the respondent, Gabriele Gentile (the "Respondent"). In the Notice of Hearing, MFDA Staff alleged that the Respondent, as branch manager, had failed to adequately supervise the activities within the branch when he failed to advise his head office compliance department of information that he had that an insurance agent working from the branch location (the "Insurance Agent") had borrowed money from clients that had not been repaid. The Respondent's position on the motion was that he had no obligation to escalate the reports he had received because the Insurance Agent was not an MFDA Approved Person.