MFDA announces disciplinary proceeding in respect of Danny Rana
TORONTO, Aug. 22, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Danny Rana ("Respondent"). In its Notice of Hearing dated June 26, 2018, 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: In April 2016, the Respondent processed transactions in two client accounts as redemptions and purchases, rather than as switches, to ensure that the transactions counted toward the Member's sales targets for the Respondent, thereby:
| a) |
failing to observe high standards of ethics and conduct in the transaction of business, or engaging in any business conduct or practice which is unbecoming or detrimental to the public interest, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1; or |
| b) |
engaging in conduct which gave rise to a conflict of interest which the Respondent failed to disclose to the Member, or address by the exercise of responsible business judgement influenced only by the best interests of the client, contrary to MFDA Rule 2.1.4. |
Allegation #2: In April 2016, the Respondent obtained, photocopied and used a partially completed signed account form in order to process a transaction on behalf of client MIK, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1.
Allegation #3: In April 2016, the Respondent altered an account form using correction fluid after the form was signed by client FH, without obtaining the client's initials to acknowledge the alteration, in order to process a transaction on behalf of the client, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on September 11, 2018 at 9:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.
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 conducted business in Brampton, Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 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
Charles Toth, Director, Litigation, 416-943-4619, [email protected]
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