Regulatory body examines mutual-fund complaints against former White Rock businesswoman
Allegations that a former White Rock businesswoman engaged in inappropriate securities-related conduct are being investigated by the Mutual Fund Dealers Association of Canada.
According to a news release issued by the MFDA last month, a date for a hearing into the merits of the case against Penny Diann Deming is to be set tomorrow (Tuesday), during a teleconference before a panel of the association’s Pacific Regional Council.
Deming is the founder of SHE Financial Group Inc. According to a notice of hearing issued Nov. 26, Deming is alleged to have sold $100,000 worth of shares in her company to two individuals – identified only as “AW” and “MM” – while she was a registered mutual-fund salesperson with Worldsource Financial Management Inc. The sales were contrary to MFDA’s standard of conduct and in contravention of MFDA conflict-of-interest guidelines, the notice states.
The MFDA regulates the operations, standards of practice and business conduct of Canadian mutual-fund dealers.
The activities in question allegedly took place between May 2010 and November 2011. The two people who bought the shares have “no reasonable prospect of… recovering the principal amounts of their respective investments in SHE Financial,” the notice states.
South Surrey resident Marcie Munro told Peace Arch News she is the “MM” noted in the MFDA documents, and that she filed the complaint that started the association’s investigation.
By going public with her story, Munro said she hopes other women who have had the same or a similar experience will come forward.
“I feel I must do my due diligence and be the example,” Munro said. “I just want women to be in the know and be really wary and savvy.”
Munro said that while she feels embarrassed, she feels “vindicated” by the investigation.
The notice of hearing notes that Deming was registered in B.C. with Worldsource from Sept. 9, 2009 to June 5, 2012, and at all material times carried on business in White Rock. It further states that her licence to sell insurance in B.C. was terminated on June 1, 2012, and that she is not currently registered or licensed in any capacity in the Canadian securities or insurance industries, and that she filed for personal bankruptcy on May 31, 2012, and now works and resides in Mexico.
The allegations have not been proven in court. Deming had 20 days from Nov. 26 to respond to the notice of hearing. As of Jan. 20, no reply had been posted to the MFDA’s website.
PAN’s attempts to contact Deming have been unsuccessful.