MFDA announces disciplinary proceeding in respect of Avtar Badasha
TORONTO, Dec. 10, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Avtar Singh Badasha (the "Respondent"). In its Notice of Hearing dated November 21, 2014, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between July 1, 2012 and September 30, 2012, the Respondent allowed an unregistered individual named AP to open new accounts at the Member for 16 individuals with whom the Respondent never met or spoke, thereby:
| a) |
failing to ensure that he performed the necessary due diligence to learn the essential facts relative to each client for whom an account was opened, contrary to MFDA Rules 2.2.1(a) and 2.1.1; and |
| b) |
failing in his capacity as a branch manager to ensure that business conducted at the branch was in compliance with MFDA By-laws, Rules and applicable legislation, and to supervise the opening of new accounts at the Member's branch office, contrary to MFDA Rules 2.5.5(f)(i) and (ii). |
Allegation #2: Between September 2011 and December 2013, the Respondent engaged in conduct unbecoming an Approved Person by:
| a) |
obtaining, maintaining and using approximately seven blank signed forms in the accounts of four clients; |
| b) |
securing client signatures on account documentation for eight client accounts by sending only the signature pages to six clients; |
| c) |
changing the dates on two client account forms that were faxed by one client; |
contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on January 29, 2015, at 10:00 a.m. (Pacific), in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will take place in the MFDA hearing room located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, and will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Vancouver, British Columbia at a time and venue to be announced.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Surrey, British Columbia.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.
SOURCE: Mutual Fund Dealers Association of Canada
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]
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