MFDA announces settlement hearing to take place in respect of Rakeshkumar Patel
TORONTO, June 13, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Rakeshkumar Patel ("Respondent") by Notice of Hearing dated March 26, 2019.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing will take place on September 17, 2019, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be heard, in the hearing room at the offices of the MFDA, 121 King Street West, Suite 1000, Toronto, Ontario.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent,
a) |
on February 27, 2015, without client VB's authorization, changed client VB's address on the Member's back office system from client VB's residential address to the branch address at which the Respondent conducted business, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 2.10 and 1.1.2; |
b |
on April 14, 2015, in response to a supervisory query from the Member's compliance staff regarding the suitability of a trade, changed client VB's investment objectives on a Know-Your-Client ("KYC") update form without client VB's knowledge or authorization, and falsified client VB's signature on the KYC update form, contrary to MFDA Rules 2.2.1 and 2.1.1; and |
c) |
on January 13, 2016, misled the Member during the course of its supervisory investigation into his conduct, contrary to MFDA Rule 2.1.1. |
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
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 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 81,000 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, Managing Director, Litigation, 416-943-4619, [email protected]
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