MFDA Hearing Panel announces sanctions against Prabhdyal Singh Rai and issues Decision and Reasons
TORONTO, July 24, 2019 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons dated July 24, 2019 ("Decision and Reasons") in connection with a disciplinary hearing held in Toronto, Ontario on May 23-24, 2019 and June 27, 2019 in the matter of Prabhdyal Singh Rai ("Respondent").
As previously announced, the Hearing Panel made the following findings of misconduct against the Respondent:
a) |
in March 2016, he submitted a line of credit application on his own behalf which contained false information and fabricated supporting documents, thereby failing to observe high standards of ethics and conduct in the transaction of business or engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1; and |
b) |
commencing in August 2017, he failed to cooperate with MFDA Staff during the course of an investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1. |
At the hearing on June 27, 2019, the parties made submissions with respect to penalty and the Hearing Panel reserved its decision. In its Decision and Reasons, the Hearing Panel has imposed the following sanctions on the Respondent:
- a permanent prohibition from conduct securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $80,000; and
- costs in the amount of $7,500.
A copy of the Decision and Reasons is available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent conducted business in the Toronto, 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 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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