Mutual fund regulator finds Gilles Latour violated rules

In this Oct. 22, 2012, file photo, Gilles Latour makes a presentation to Cornwall city council. (Newswatch Group/Bill Kingston, File)

TORONTO – A hearing panel for the Mutual Fund Dealers Association of Canada has found Gilles Latour violated a number of its rules.

A three-member hearing panel held a Hearing on the Merits today (Monday). The hearing had been scheduled for two days but the adjudicators arrived at their decision this afternoon.

Prior to Monday’s hearing, a notice of hearing was called last week and held on Friday afternoon. CNW has learned that hearing was to delay today’s proceedings.

The panel found Latour had accepted at least $651,946 between May 2007 and October 2014 from at least three clients and failed to return or account for the money.

He was also found guilty of failing or refusing to provide documents and information and attending an interview as requested by MFDA investigators.

The panel will issue written reasons for its decision at a later date, the MFDA said.

Proceedings on penalties will also happen at a later date following submissions from both sides, the regulator said.

There are a number of penalties that could be imposed, from fines up to $5 million per offence to revoking or prohibiting Latour from securities trading.

The public hearing was not a criminal proceeding and is separate from Latour’s 43 criminal charges, which are scheduled for a preliminary hearing next month in Cornwall, Ont.

The MDFA is a self-regulating body overseeing 83,000 approved mutual fund dealers across Canada.