MFDA Hearing Panel accepts settlement agreement with Alex Eng

TORONTO, April 27, 2022 /CNW/ - A settlement hearing in the matter of Alex Eng (the "Respondent") was held electronically by video conference on April 26, 2022 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel accepted the settlement agreement dated February 1, 2022 (the "Settlement Agreement"), between Staff of the MFDA and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:

• a fine in the amount of $12,500, payable as follows:
• $4,166.67 on or before May 31, 2022;
• $4,166.67 on or before June 30, 2022;
• $4,166.67 on or before July 29, 2022;
• costs in the amount of $5,000; and
• shall in the future comply with MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2.

In the Settlement Agreement, the Respondent admitted that between November 2018 and February 2019, he processed 10 transactions in 7 client accounts as redemptions and purchases, rather than as switches, in order to ensure the transactions counted towards the Member's sales targets for the Respondent, thereby engaging in conduct giving rise to conflicts or potential conflicts of interest which the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgement influenced only by the best interests of the clients, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in Montreal, Québec.

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 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.

SOURCE Mutual Fund Dealers Association of Canada

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]