MFDA announces disciplinary proceeding in respect of Cheng Han Lee

TORONTO, Aug. 9, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Cheng Han Lee (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 April 8, 2010 and April 14, 2010, the Respondent failed to deal fairly, honestly and in good faith with client SW by processing redemptions in client SW's accounts and then re-investing the redemption proceeds in a manner which required client SW to unnecessarily incur $4,513 in deferred sales charges and allowed the Respondent to earn $2,528 in sales commissions, contrary to the Member's short-term reinvestment policy and MFDA Rule 2.1.1.
			Allegation #2: Commencing April 7, 2011, the Respondent has failed or refused to attend an interview requested by the MFDA during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on August 30, 2012 at 10:00 a.m. (Pacific) in the MFDA hearing room located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia. The purpose of the appearance is to set a date for the hearing of this matter on its merits and to 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 121 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.

 

SOURCE: Mutual Fund Dealers Association of Canada

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