MFDA announces disciplinary proceeding in respect of Equity Associates Inc.
TORONTO, Jan. 8, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") today announced that it has commenced disciplinary proceedings in respect of Equity Associates Inc. (the "Respondent"). In its Notice of Hearing dated December 18, 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: On or about July 4, 2008, the Respondent opened two new joint accounts for clients DH and EH without ensuring that: |
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| (a) |
it obtained a New Account Application Form ("NAAF") or other form documenting the know-your-client ("KYC") information for each of the joint accounts in a manner which conformed with the requirements of MFDA Rule1 2.2.1, contrary to MFDA Rules 2.2.2 and 2.1.1; and |
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| (b) |
a designated trading partner, director or officer, approved the opening of the new joint accounts prior to or promptly after the completion of the initial transactions in the accounts, contrary to MFDA Rules 2.2.3 and 2.1.1. |
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| Allegation #2: Between July 4, 2008 and April 27, 2009, the Respondent failed to ensure that it learned the essential facts relative to two new joint accounts that were opened for clients DH and EH and failed to ensure that the orders that were accepted and the investment recommendations that were made in respect of the joint accounts of clients DH and EH were suitable for clients DH and EH, in keeping with their investment objectives, and within the bounds of good business practice, contrary to MFDA Rules 2.2.1 and 2.1.1. |
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| Allegation #3: Commencing July 2009, the Respondent failed to ensure that a complaint from clients DH and EH concerning the losses that they sustained in their joint accounts was handled promptly and fairly, contrary to MFDA Rules 2.1.1 and 2.11 and MFDA Policy No. 3. |
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The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on February 3, 2015 at 11:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the first 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. During the period described in the Notice of Hearing, the Respondent carried on business as a mutual fund dealer in all Canadian provinces except Saskatchewan and as an Exempt Market Dealer in Newfoundland and Labrador and in Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 107 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.
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1 Note: The MFDA By-law, Rules and Policies have been amended from time to time. All references to the MFDA By-law, Rules and Policies in this Notice of Hearing rely on the wording of the applicable By-law provision, Rule or Policy at the time when the alleged misconduct occurred.
SOURCE Mutual Fund Dealers Association of Canada
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]
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