MFDA Hearing Panel issues Reasons for Decision in the matter of Chi Hong Yip

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Mutual Fund Dealers Association of Canada

Jul 20, 2018, 17:04 ET

TORONTO, July 20, 2018 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision dated July 20, 2018 in connection with a settlement hearing held in Toronto, Ontario held on March 29, 2018 in the matter of Chi Hong Arthur Yip ("Respondent").

In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:

  • shall pay a fine in the amount of $12,500 ("Fine");
  • has paid costs in the amount of $2,500 ("Costs");
  • shall pay the Fine to the MFDA in certified funds as follows:


    • a)

    $2,500 (Costs) upon entering into the Settlement Agreement;

    b)

    $2,083.33 (Fine) on the last business day of April 2018;

    c)

    $2,083.33 (Fine) on the last business day of May 2018;

    d)

    $2,083.33 (Fine) on the last business day of June 2018;

    e)

    $2,083.33 (Fine) on the last business day of July 2018;

    f)

    $2,083.33 (Fine) on the last business day of August 2018;

    g)

    $2,083.33 (Fine) on the last business day of September 2018; and


  • if he fails to make any of the payments described above, any outstanding balance of the Fine shall become immediately due and payable to the MFDA and he 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 owed is paid to the MFDA, pursuant to s. 24.3.13(c) of MFDA By-law No.1; and
  • shall in the future comply with MFDA Rule 2.1.1.

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

a)

between April 2012 and September 2015, he signed the signature of ten 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, four pre-signed account forms, contrary to MFDA Rule 2.1.1.

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 Settlement Agreement, the Respondent carried on business in the North York, 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

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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...