MFDA Hearing Panel approves settlement agreement with Danny Rana
TORONTO, Jan. 17, 2019 /CNW/ - A settlement hearing in the matter of Danny Rana ("Respondent") was held today in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated January 7, 2019 ("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; and
- costs in the amount of $5,000.
In the Settlement Agreement, the Respondent admitted that, in April 2016:
a) |
he processed transactions in two client accounts as redemptions and purchases rather than as switches, to ensure that the transactions counted towards the Member's sales targets for him, thereby engaging in conduct which gave rise to a conflict of interest that he failed to disclose to the Member, or address by the exercise of responsible business judgement influenced only by the best interests of the client, contrary to the Member's policies and procedures and MFDA Rules 2.1.4 and 1.1.2 and 2.5.1; |
b) |
he obtained, photocopied and used a partially completed signed account form in order to process a transaction on behalf of client MIK, contrary to the Member's policies and procedures and MFDA Rules 2.1.1 and 1.1.2 and 2.5.1; and |
c) |
he altered and used an account form to process a transaction without having client FH initial the alteration, contrary to the Member's policies and procedures and MFDA Rules 2.1.1 and 1.1.2 and 2.5.1. |
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 conducted business in the Brampton, 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 82,000 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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