Decision Notice - CIRO Sanctions Wenyuan (Simon) Fan

TORONTO, Feb. 7, 2024 /CNW/ - Following a hearing on the merits held on September 1, 2023, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the MFDA Rules, which are now incorporated in the Mutual Fund Dealer Rules, found that all the allegations made against Wenyuan (Simon) Fan (Respondent) had been proven and reserved their decision on sanctions.  The hearing panel has issued their decision on sanctions, and imposed the following sanctions on Wenyuan  Fan:

1. 1. 1. a permanent prohibition on the Respondent's authority to conduct security related business while in the employ of or associated with any Dealer Member of CIRO that is registered as a mutual fund dealer; and
      2. a fine in the amount of $25,000;

Wenyuan Fan is also required to pay costs in the amount of $7,500.

The sanctions decision and reasons can be found at:

Re Fan, 2024 CIRO 20

At the September 1, 2023 hearing, the hearing panel found that Wenyuan Fan:

1. 1. 1. opened a new account for a client and processed transactions in the client's account without the authorization of the client; or based on false or misleading statements he made to the client;
      2. signed the signature and initials of a client on an account opening form and submitted it to the Member for processing;
      3. recorded false or misleading notes on the Member's system;
      4. made false or misleading statements to a client after opening the new account for the client and processing transactions in the client's account; and
      5. made false or misleading statements to the Member during the course of an investigation into his conduct.

During the period described in the Notice of Hearing, Wenyuan Fan conducted business in Ottawa, Ontario.

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], 416-943-4640