MFDA Hearing Panel approves six settlement agreements

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Mutual Fund Dealers Association of Canada

Sep 28, 2018, 18:05 ET

TORONTO, Sept. 28, 2018 /CNW/ - On September 27, 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:

Bradley Blake

A hearing in the matter of Bradley Stafford Blake ("Blake") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated June 27, 2018 ("Settlement Agreement") between Staff of the MFDA and Blake, as a consequence of which the following sanctions were imposed:

  • a prohibition from acting as a branch manager for a period of six months;
  • a fine in the amount of $12,500 ("Fine");
  • costs in the amount of $2,500 ("Costs");
  • payment of the Fine and Costs shall be made in certified funds as follows:

a)         Costs upon acceptance of the Settlement Agreement;
b)         $4,000 (Fine) on or before the last business day of December 2018;
c)         $4,000 (Fine) on or before the last business day of March 2019;
d)         $4,500 (Fine) on or before the last business day of June 2019; and

  • in the future shall comply with MFDA Rules 2.1.1 and 2.5.5.

In the Settlement Agreement, Blake admitted that:

a)     

between September 2010 and January 2017, he obtained, possessed and, in some instances, used to process transactions, 36 pre-signed account forms in respect of ten clients, contrary to MFDA Rule 2.1.1; and

b)     

between September 2010 and January 2017, he, in his capacity as branch manager, reviewed and approved the use of 36 pre-signed account forms, contrary to MFDA Rules 2.5.5(f) 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, Blake carried on business in the Toronto, Ontario area.

Sunil Chugh

A hearing in the matter of Sunil Chugh ("Chugh") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated July 19, 2018  ("Settlement Agreement") between Staff of the MFDA and Chugh, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $13,500;
  • costs in the amount of $2,500; and
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Chugh admitted that:

a)     

between May 2002 and July 2016, he obtained, possessed and, in instances, used to process transactions, 68 pre-signed account forms in respect of 29 clients, contrary to MFDA Rule 2.1.1; and

b)     

between June 2007 and October 2013, he altered seven account forms in respect of seven clients by altering information on the account forms without having the clients initial the alterations, 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, Chugh carried on business in the Mississauga, Ontario area.

William Martin

A hearing in the matter of William Robert Martin ("Martin") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated September 4, 2018 ("Settlement Agreement") between Staff of the MFDA and Martin, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $17,000;
  • costs in the amount of $2,500;
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Martin admitted that:

a)     

between January 2007 and September 2017, he obtained, possessed and, in some instances, used to process transactions, 124 pre-signed account forms in respect of 50 clients, contrary to MFDA Rule 2.1.1; and

b)     

between February 2010 and February 2017, he altered 11 account forms in respect of ten clients by altering information on the account forms without having the clients initial the alterations, 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, Martin carried on business in the Mississauga, Ontario area.

Bernard Ho

A hearing in the matter of Bernard Yew Kong Ho ("Ho") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated May 18, 2018 ("Settlement Agreement") between Staff of the MFDA and Ho, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $11,500;
  • costs in the amount of $2,500;
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Ho admitted that:

a)     

between January 2013 and February 2017, he altered, and used to process transactions, 19 account forms in respect of 17 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and

b)     

on or about January 8, 2016, he obtained, possessed, and used to process transactions, two pre-signed account forms in respect of a client, 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, Ho carried on business in the Toronto, Ontario area.

Sarah Del Rosario

A hearing in the matter of Sarah Solis Maria Suzarah Del Rosario ("Del Rosario") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated June 26, 2018 ("Settlement Agreement") between Staff of the MFDA and Del Rosario, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $10,000;
  • costs in the amount of $2,500;
  • a prohibition from acting as a branch manager for a period of two months; and
  • in future shall comply with MFDA Rules 2.2.1, 2.3.1, and 2.1.1.

In the Settlement Agreement, Del Rosario admitted that:

a)     

on or about April 24, 2015, she failed to ensure that a trade in a client account was suitable for the client having regard to the essential Know-Your-Client factors, including the client's age, time horizon and investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1; and

b)     

on or about April 24, 2015, she processed a trade in a client account, using her discretion to select a version of a mutual fund subject to a deferred sales charge, contrary to MFDA Rules 2.3.1 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, Del Rosario carried on business in the Ottawa, Ontario area.

Gerald Letourneau

A hearing in the matter of Gerald Raymond Letourneau ("Letourneau") was held on September 27, 2018 at which the Hearing Panel approved the settlement agreement dated August 27, 2018 ("Settlement Agreement") between Staff of the MFDA and Letourneau, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $16,000;
  • costs in the amount of $2,500; and
  • in the future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Letourneau admitted that:

a)    

between January 2011 and February 2017, he obtained, possessed and, in some instances, used to process transactions, 68 pre-signed account forms in respect of 38 clients, contrary to MFDA Rule 2.1.1; and

b)     

between January 2011 and February 2017, he falsified ten account forms in respect of ten clients by altering information on the account forms without having the clients initial the alterations, 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, Letourneau carried on business in the Niagara Falls, 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, 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...