Decision Notice - CIRO Hearing Panel issues reasons for decision in the matter of Muhamad Asghar Sadiq

TORONTO, May 17, 2024 /CNW/ - Following a disciplinary hearing held on August 16 and November 2, 2022, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules found that Muhamad Asghar Sadiq:

1. 1. 1. failed to use due diligence to learn and accurately record or intentionally misrepresented the essential facts relative to at least 11 clients;
      2. submitted supporting documents to the Member in connection with loan applications of at least four clients, which he knew or ought to have known contained false, incorrect, or misleading information;
      3. failed to ensure that the leveraged investment strategy and the underlying investments that he recommended and implemented in the accounts of at least 10 clients were suitable for the clients, in keeping with the clients' risk tolerances, investment knowledge, and ability to withstand the potential costs and investment losses;
      4. failed to fully and adequately explain, or omitted to explain the risks, benefits, material assumptions, costs, and features of the leveraged investment strategy and the underlying investments that he recommended and implemented in the accounts of at least 11 clients, thereby failing to ensure that the leverage investment strategy and underlying investments were suitable for the clients;
      5. engaged in securities related business on behalf of another Member that he was not registered with;
      6. misappropriated or failed to account for monies received from seven clients and one individual; and
      7. engaged in personal financial dealings with a client by providing the client with monies to pay her investment loan payments, which gave rise to a conflict or potential conflict of interest that he did not disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client.

The hearing panel imposed the following sanctions on Muhamad Sadiq:

1. 1. 1. permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member; and
      2. a fine in the amount of $750,000.

Muhamad Sadiq is also required to pay costs in the amount of $ 49,662.50.

The hearing panel's reasons for decision dated April 24, 2024, is available at:

Re Sadiq 2024 CIRO 48

During the period described in the Notice of Hearing, Muhamad Sadiq carried on business in the Mississauga, Ontario area.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)

Joanna Nicholson, Manager, Corporate Communications and Public Affairs, [email protected], Phone: [phone]