MFDA Hearing Panel approves six settlement agreements

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Mutual Fund Dealers Association of Canada

Apr 02, 2018, 17:24 ET

TORONTO, April 2, 2018 /CNW/ - On March 29, 2018, a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following six settlement proceedings, the particulars of which are:

Aranpreet Bhullar

A hearing in the matter of Aranpreet Kaur Bhullar ("Bhullar") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Bhullar, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $5,000;
  • costs in the amount of $1,000; and
  • shall in the future comply with MFDA Rules 2.1.1.

In the Settlement Agreement dated November 28, 2017, Bhullar admitted that between September and October 2015, she signed seven (7) client signatures or initials on five (5) account forms, in respect of two (2) clients, and submitted the account forms to the Member for processing, 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, Bhullar carried on business in the Mississauga, Ontario area.

Brian Chung

A hearing in the matter of Brian Chung ("Chung") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Chung, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $15, 000;
  • costs in the amount of $2,500; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement dated December 28, 2017, Chung admitted that:

a)

on January 28, 2016, he processed an unauthorized withdrawal from the bank account of two (2) clients in order to purchase mutual funds on behalf of the clients, contrary to MFDA Rule 2.1.1; and

b)

between January 15, 2016 and January 29, 2016, he misled two (2) clients about the status of a cheque that the clients had provided to him for the purchase of mutual funds, 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, Chung carried on business in the North York, Ontario area.

Chi Hong Yip

A hearing in the matter of Chi Hong Arthur Yip ("Yip") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Yip, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $12,500 ("Fine");
  • costs in the amount of $2,500 ("Costs");
  • the Fine and Costs are payable to the MFDA in certified funds as follows:
    a)  $2,500 (Costs) upon entering into the Settlement Agreement;
    b)  $2083.33 (Fine) on the last business day of April 2018;
    c)  $2083.33 (Fine) on the last business day of May 2018;
    d)  $2083.33 (Fine) on the last business day of June 2018;
    e)  $2083.33 (Fine) on the last business day of July 2018;
    f)   $2083.33 (Fine) on the last business day of August 2018;
    g)  $2083.33 (Fine) on the last business day of September 2018; and
  • if Yip fails to make any of the payments described above, any outstanding balance of the Fine and Costs shall become immediately due and payable to the MFDA and Yip shall be immediately suspended from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of Fine and Costs owed by Yip is paid to the MFDA, pursuant to s. 24.3.13(c) of MFDA By-law No.1;
  • shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement dated October 13, 2017, Yip admitted that:

a)

between April 2012 and September 2015, he signed the signature of ten (10) clients on 13 account forms, contrary to MFDA Rule 2.1.1; and

b)

between April 2012 and September 2015, he obtained, possessed and, in some instances, used to process transactions, 4 pre-signed account forms, 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, Yip carried on business in the Markham, Ontario area.

Jennifer Coward

A hearing in the matter of Jennifer Claire Coward ("Coward") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Coward, 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 Member of the MFDA for a period of three months;
  • costs in the amount of $2,500; and
  • shall in the future comply with MFDA Rules, 1.1.2, 2.5.1, and 2.1.1.

In the Settlement Agreement dated October 3, 2017, Coward admitted that on or about January 21, 2016, she processed a redemption in a client account based upon email instructions received from a third party who had gained unlawful access to the client's email, and subsequently misappropriated the proceeds of the redemption, thereby failing to comply with the Member's policies and procedures which prohibited her from accepting trade instructions by email, contrary to MFDA Rules 1.1.2, 2.5.1 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, Coward carried on business in the London, Ontario area.

Michael O'Mara

A hearing in the matter of Michael James O'Mara ("O'Mara") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and O'Mara, 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 Member of the MFDA for a period of six months;
  • costs in the amount of $2,500 ("Costs");
  • the Costs are payable to the MFDA in certified funds as follows:
    a)  $1,000 (Costs) upon acceptance of the settlement agreement;
    b)  $1,500 (Costs) on or before 30 days after the date of the Settlement Hearing; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement dated October 6, 2017, O'Mara admitted that:

a)

between November 2015 and December 2015, he signed the signature of three (3) clients on five (5) account forms, contrary to MFDA Rule 2.1.1;

b)

on May 25, 2016, he misled the Member during the course of its investigation into his conduct when he falsely denied that he had signed the signature of two (2) clients on two (2) account forms, contrary to MFDA Rule 2.1.1; and

c)

on August 17, 2016, he misled the MFDA during the course of its investigation into his conduct when he falsely denied that he had signed the signature of four (4) clients on four (4) account forms, 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, O'Mara carried on business in the Windsor, Ontario area.

Francine Dick

A hearing in the matter of Francine Miriam Dick ("Dick") was held on March 29, 2018 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Dick, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $15,000; and
  • costs in the amount of $2,500.

In the Settlement Agreement dated January 23, 2018, Dick admitted that:

a)

between November 2009 and February 2016, she, or her assistant for whom she was responsible, altered, and used to process transactions, seven (7) account forms in respect of seven (7) clients by altering information on the account without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and

b)

between March 2010 and February 2016, she obtained, possessed, and in at least 38 instances, used to process transactions, 44 pre-signed account forms in respect of 21 clients, 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, Dick carried on 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 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

please contact: Charles Toth, Director, Litigation, 416-943-4619, [email protected]

Related Links

http://www.mfda.ca

Organization Profile

Mutual Fund Dealers Association of Canada

The Mutual Fund Dealers Association of Canada (MFDA) is the national self-regulatory organization (SRO) for the distribution side of the Canadian mutual fund industry. It was established in June 1998 at the initiative of the Canadian Securities Administrators. The MFDA...