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Former White Rock businesswoman denies allegations of securities misconduct
A former White Rock businesswoman whose securities-related conduct is the subject of disciplinary proceedings is disputing all allegations of misconduct and conflict of interest.
In a reply to a Mutual Fund Dealers Association of Canada notice of hearing, Penny Diann Deming states she "denies the facts alleged and conclusions drawn" by MFDA staff and states the dealer she worked with "was fully aware and supported my development of the firm and at no time provided any advice that this should be handled differently."
A first appearance set for Jan. 21 in Vancouver by teleconference was adjourned. It is now set for Jan. 28, again by teleconference.
The MFDA, which regulates the operations, standards of practice and business conduct of Canadian mutual-fund dealers, announced disciplinary proceedings against Deming – founder of SHE Financial Group Inc.– on Dec. 3, alleging violations of the association's bylaws, rules or policies.
Replies to such allegations are not posted to the MFDA website, and Deming did not respond to a Peace Arch News' request for comment. A copy of her reply, dated Dec. 22, was received by PAN from the association on Jan. 21.
The activities in question allegedly took place between May 2010 and November 2011, while Deming was a registered mutual-fund salesperson with Worldsource Financial Management Inc. She currently resides in Mexico.
According to the notice of hearing, two individuals – identified only as "AW" and "MM" – who were each sold $50,000 in shares in SHE Financial have “no reasonable prospect of… recovering the principal amounts of their respective investments.”
The sales were contrary to MFDA’s standard of conduct and in contravention of MFDA conflict-of-interest guidelines, the notice states.
In denying the allegations, Deming states she "did not proposition, position or offer shares" to AW or MM.
"Both AW and MM joined SHEfinancial as working partners… to assist me in building the firm," her reply states.
"Since SHEfinancial group is a corporation, shares were assigned to both AW and MM to facilitate the partnership arrangement by the corporate lawyer.
"At no point did I have any knowledge or consideration that there could be an issue, conflict of interest or a violation of my responsibilities as a mutual fund representative with the addition of the partners AW or MM."
Deming states both individuals sought her out and wanted to join SHE Financial, the vision for which was to empower women. They joined as partners and held positions related to their skills, she states.
"The dealership was aware of the entire process and at no point did anyone advise me of any conflict (of) interest or violation.
"It was never my intention or even a possibility that I would have knowingly done anything to violate the rules and responsibilities of my role as a mutual fund representative and/or insurance advisor."