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By Tiffany Goodwein

Disciplinary hearing scheduled for Medicine Hat financial advisor

Feb 13, 2021 | 11:39 AM

A Medicine Hat financial advisor is facing a disciplinary hearing later this month.

The Mutual Fund Dealers Association of Canada alleges that Tyler Weldon Davidson recommended a trade in a mutual fund that unnecessarily subjected a client to a differed sales charge schedule and generated commissions to himself.

The incident took place in 2014 while Davidson was employed at a local firm.

According to the notice obtained by CHAT News, the client, whose name was withheld, was eligible to access mutual funds with no commission or sales charge because the client had over $250,000 in investable non-registered assets.

Instead of opting for that route, the notice states that Davidson facilitated the purchase of a mutual fund valued at $403,800 on Sept 5, 2014. The mutual fund was subject to a 7 year deferred sales charge.

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As a result of the purchase, Davidson received $15,346 in commission.

A few days later on Sept, 9 2014, Davidson attempted to switch the client’s mutual fund account into a portfolio of new mutual funds that offers mutual funds with no commission, differed sales charges, or fees. But because the mutual funds were transferred, the mutual funds were still subject to the same differed sales charges.

A year later, the client redeemed some of her mutual funds and incurred approximately $17,200 in differed sales charges, according to the notice.

In 2015, the client then attempted to redeem the mutual funds to purchase a house. But because the funds were locked into a fixed fee schedule agreement, she would have had to pay substantial fees. The client then resorted to taking money out of a line of credit to finance the down payment of her home. She had to pay $2267 in interest as a result.

The Mutual Fund Dealers Association of Canada confirmed to CHAT News that Davidson is no longer registered in the security industry.

The notice states that Davidson is currently licensed in the insurance industry.

According to the website for SevenOaks Private Wealth, he is currently listed as a partner.

CHAT News reached out to Davidson and SevenOaks Private Wealth to confirm his current credentials and received no response.

Davidson’s disciplinary hearing is scheduled at the end of February.