MFDA Hearing Panel accepts Settlement Agreement with Lloyd Snyder
TORONTO, Dec. 10, 2014 /CNW/ - A Settlement Hearing in the matter of Lloyd A. Snyder (the "Respondent") was held yesterday in Charlottetown, Prince Edward Island before a three-member Hearing Panel of the Atlantic Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel accepted the Settlement Agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:
| a) |
shall, for a period of ten (10) years, be prohibited from conducting securities related business while in the employ of or associated with any MFDA Member; |
| b) |
shall pay a fine in the amount of $50,000; |
| c) |
shall pay costs in the amount of $50,000; |
| d) |
If the Respondent fails to comply with (b) and (c) above, then without further notice to the Respondent, he shall summarily be permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member; and |
| e) |
shall in the future comply with MFDA Rules 2.2.1 and 2.1.1. |
In the Settlement Agreement, the Respondent admitted that:
| a) |
between 2005 and 2007, he failed to fully and adequately explain the risks, benefits, material assumptions, features and costs of the leveraged investment recommendations that he implemented in the accounts of at least 15 clients, thereby failing to ensure that the leveraged investment recommendations were suitable and appropriate for the clients and in keeping with their investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1; and |
| b) |
between 2005 and 2007, he failed to ensure that the leveraged investment recommendations that he implemented in the accounts of at least 15 clients were suitable and appropriate for the clients and in keeping with their investment objectives, having regard to the clients' relevant "Know Your Client" factors including, but not limited to, the clients' ability to afford the costs associated with the investment loans, their ability to withstand investment losses, and their risk tolerance, contrary to MFDA Rules 2.2.1 and 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 Prince Edward Island.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 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
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]
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