MFDA Hearing Panel accepts settlement agreement with Anthony Chiaravalloti

TORONTO, May 18, 2022 /CNW/ - A settlement hearing in the matter of Anthony Peter Chiaravalloti (the "Respondent") was held electronically by videoconference on May 17, 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 May 16, 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 prohibition from conducting securities related business in any capacity while in the employ of or in association with a Member of the MFDA for three years, commencing May 17, 2022;
• a fine in the amount of $15,000 ("Fine");
• costs in the amount of $5,000 ("Costs");
• payment of the Fine and Costs shall be make in instalments as follows:
• $5,000 (Fine) and $5,000 (Costs) on May 17, 2022;
• $1,000 (Fine) on or before July 29, 2022;
• $1,000 (Fine) on or before August 31, 2022;
• $1,000 (Fine) on or before September 30, 2022;
• $1,000 (Fine) on or before October 31, 2022;
• $1,000 (Fine) on or before November 30, 2022;
• $1,000 (Fine) on or before December 30, 2022;
• $1,000 (Fine) on or before January 31, 2023;
• $1,000 (Fine) on or before February 28, 2023;
• $1,000 (Fine) on or before March 31, 2023;
• $1,000 (Fine) on or before April 28, 2023; and
• shall in the future comply with MFDA Rules 2.4.2, 1.3.2, 1.2.5, 2.1.1, 2.5.1, and 1.1.2.

In the Settlement Agreement, the Respondent admitted that:

1. 
   
1. in October 2015, he entered into a referral arrangement with a third party and earned compensation for referring a client to purchase syndicated mortgage investments, thereby participating in a referral arrangement to which the Member was not a party, contrary to the Member's policies and procedures, and MFDA Rules 2.4.2, 2.1.1, 2.5.1, and 1.1.2;
2. between August 2017 and June 2019, he engaged in unapproved outside business activities by establishing, operating, or acting as a director with respect to two companies and promoting or holding himself out as engaging in a mediation business  without the prior approval of the Member, contrary to the Member's policies and procedures and MFDA Rules 1.3.2, 1.2.5, 2.1.1, 2.5.1, and 1.1.2; and
3. between March 2016 and March 2019, he provided false or misleading statements to the Member on annual compliance questionnaires, contrary to MFDA Rule 2.1.1.

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 the Vaughan, Ontario area.

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]