MFDA announces disciplinary proceeding in respect of Bill Hsueh

TORONTO, Feb. 22, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Bill Hsueh (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between May 14, 2008 and September 15, 2008, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member, by recommending and facilitating the transfer of mutual funds from client GL's account to accounts at an online discount broker opened in the name of GL and then trading equity securities held in the online accounts for client GL, contrary to:

(a)     MFDA Rules 1.1.1(a) and 2.1.1; and

(b)     the terms of the Respondent's registration as a mutual fund salesperson.

Allegation #2: Between May 2008 and September 2008, the Respondent engaged in conduct unbecoming an Approved Person by failing to inform GL about the status of her investments in the online accounts in an honest and accurate manner and by failing to respond sufficiently or at all to specific queries by GL concerning the status of her investments in the online accounts, contrary to MFDA Rule 2.1.1(c).

Allegation #3: Between September 12, 2008 and December 9, 2009, the Respondent failed to handle complaints received from client GL concerning the status of client GL's investments in the online accounts by failing to inform the Member of the complaints and by attempting to settle the complaints directly with client GL without the Member's knowledge and involvement, contrary to:

(a)     MFDA Policy No. 3, MFDA Policy No. 6 and MFDA Rules 2.11 and 2.1.1; and

(b)     the Member's policies and procedures, thereby interfering with the ability of the Member to supervise the Respondent and comply with its obligations under MFDA Rule 2.11, contrary to MFDA Rules 1.1.2 and 2.5.1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on March 14, 2012 at 10:00 a.m. (Eastern) in the MFDA Hearing Room located at 121 King Street West, Suite 1000, Toronto, Ontario.

The purpose of the appearance is to set a date for the hearing of this matter on its merits and address any other procedural matters and will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 125 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or [email protected]