MFDA Hearing Panel issues Reasons for Decision in the matter of Alfonso Chin
TORONTO, Oct. 14, 2014 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MDFA") has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario, on July 22, 2014, in the matter of Alfonso Chin (the "Respondent"). The Reasons for Decision relate to the Hearing Panel's acceptance of the settlement agreement (the "Settlement Agreement") entered into between the Respondent and Staff of the MFDA. The following sanctions were imposed on the Respondent:
- a permanent prohibition on the authority of the Respondent to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $30,000, which fine shall be reduced by any amounts, excluding payments for legal costs, that the Respondent can establish, based on documentary evidence acceptable to Staff in its sole discretion, that he has paid to Lexxco Investors to settle civil actions commenced by them against the Respondent; and
- costs in the amount of $2,500.
In the Settlement Agreement, the Respondent admitted that:
| a) |
between 2006 and 2011, he engaged in securities related business that was not carried on for the account and through the facilities of the Member by referring or facilitating the sale of at least $3,105,000 of investments in a mortgage investment corporation to 2 clients and 11 other individuals outside the Member, contrary to MFDA Rules 1.1.1(a) and 2.1.1; |
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| b) |
between 2006 and 2011, he received at least $102,053.56 in referral fees for referring or facilitating the sale of investments in a mortgage investment corporation to 2 clients and 11 other individuals, thereby participating in a referral arrangement in relation to securities related business to which the Member was not a party, contrary to the requirements of sections 13.7 and 13.8 of National Instrument 31-103, and MFDA Rules 2.4.2 and 2.1.1.
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Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on 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 108 Members and their approximately 80,000 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
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]
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