MFDA Hearing Panel issues Reasons for Decision in the matter of Global Maxfin Investments Inc. and Issam El-Bouji
TORONTO, June 24, 2015 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario on June 17, 2015 in the matter of Global Maxfin Investments Inc. ("Global Maxfin") and Issam El-Bouji ("Bouji") (the "Respondents"). 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. In its Reasons for Decision dated June 23, 2015, the Hearing Panel confirmed the sanctions imposed on the Respondent, namely:
As against Bouji:
| a) |
has paid a fine in the amount of $25,000; |
| b) |
has paid costs in the amount of $10,000; |
| c) |
shall be prohibited from acting as the Branch Manager or as a supervisor of Global Maxfin for a period of two (2) years from the date of acceptance of this Settlement Agreement; |
| d) |
shall sign the "Certificate of Partners or Directors" on all Form 1's filed by Global Maxfin with the MFDA for as long as Bouji remains an officer, director, partner or owner, directly or indirectly, of Global Maxfin; and |
| e) |
shall in future comply with MFDA Rules 3.1.2 and 2.5.1 and MFDA Policy No. 2. |
As against Global Maxfin:
| a) |
has paid a fine in the amount of $50,000; |
| b) |
has paid costs in the amount of $15,000; |
| c) |
shall in the future comply with MFDA Rules 3.1.1(a), 3.1.2, and 3.5.1(a); and |
| d) |
in addition to the two (2) individuals required to sign the "Certificate of Partners or Directors" that comprises part of Form 1, henceforth Bouji shall also sign the "Certificate of Partners or Directors" on all Form 1's filed by Global Maxfin with the MFDA for as long as Bouji remains an officer, director, partner or owner, directly or indirectly, of Global Maxfin. |
In the Settlement Agreement, the Respondents admitted that:
| a) |
Global Maxfin failed to have and maintain at all times risk adjusted capital greater than zero for the period May 2004 to September 2009, save and except for the months of April, May, July and August 2007, contrary to MFDA Rule 3.1.1(a); |
| b) |
Global Maxfin and Bouji failed to immediately notify MFDA Staff in October 2009 that Global Maxfin's risk adjusted capital was less than zero, contrary to MFDA Rule 3.1.2; |
| c) |
from October 30, 2009 to November 3, 2009, Global Maxfin failed to file with the MFDA within 20 business days of the month end of September 2009, the Financial Questionnaire and Report for the period ending September 30, 2009, which report disclosed a capital deficiency, contrary to MFDA Rule 3.5.1(a); and
|
| d) |
from May 2004 to November 3, 2009, Bouji failed in his capacity as the Ultimate Designated Person to ensure that Global Maxfin established, implemented, maintained and communicated an adequate compliance program to ensure the timely and accurate monitoring and reporting of Global Maxfin's capital position, contrary to MFDA Rule 2.5.1 and MFDA Policy 2. |
Copies of the Reasons for Decision and 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 all Canadian provinces except for Prince Edward Island and the Yukon Territory.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 103 Members and their over 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
Charles Toth, Director, Litigation, 416-943-4619, [email protected]
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