MFDA Hearing Panel approves settlement agreement with Mohamad Sawwaf
TORONTO, Oct. 30, 2018 /CNW/ - A settlement hearing in the matter of Mohamad Mohtaz Sawwaf ("Respondent") was held on October 29, 2018 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 October 29, 2018 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of three months;
- a fine in the amount of $10,000; and
- costs in the amount of $2,500.
In the Settlement Agreement, the Respondent admitted that:
a) |
between November 2007 and August 2012, he, or his assistant for whom he was responsible, obtained, possessed and, in some instances, used to process transactions, seven pre-signed account forms in respect of five clients, contrary to MFDA Rule 2.1.1. |
b) |
between May 2012 and August 2015, he, or his assistant for whom he was responsible, altered and in some instances, used to process transactions, three account forms in respect of three clients, by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1. |
c) |
between July 18, 2013 and October 2016, he or his assistant processed purchases and redemptions of mutual funds in the accounts of 19 clients which were subject to deferred sales charges, without the Respondent keeping records that the clients were informed of all fees and charges in accordance with MFDA Rules 2.4.4, contrary to Rule 5.1(b)(iv) and Rule 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 conducted business in Mississauga, Ontario.
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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