MFDA Hearing Panel makes findings and issues Decision and Reasons in the matter of Yuk Cheung
TORONTO, Jan. 30, 2019 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons dated January 28, 2019 ("Decision and Reasons") in connection with a disciplinary hearing held in Toronto, Ontario on November 14, 2018, in the matter of Yuk Hang Sam Cheung ("Respondent").
In its Decision and Reasons, the Hearing Panel found that the four allegations made against the Respondent in the Notice of Hearing dated January 8, 2018 ("Notice of Hearing") had been established. In particular:
Allegation #1: Between 2012 and 2015, the Respondent engaged in securities related business which was not carried on for the account of the Member or through its facilities by recommending, selling, facilitating the sale of, and/or making referrals in respect of the sale of investments to at least 5 clients totaling approximately $246,100, contrary to the Member's policies and procedures, MFDA Rules 1.1.1, 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103.
Allegation #2: Between 2012 and 2015, the Respondent engaged in another gainful occupation, which was not disclosed to and approved by the Member, when he recommended, sold, facilitated the sale of, and/or made referrals in respect of the sale of investments to at least 5 clients totaling approximately $246,100, contrary to the Member's policies and procedures, MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103.
Allegation #3: Between 2012 and 2015, the Respondent referred clients to Approved Person HL to purchase investments outside the Member, and received at least $12,305 in referral fees for doing so, thereby participating in an unapproved referral arrangement to which the Member was not a party, contrary to the Member's policies and procedures, MFDA Rules 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103.
Allegation #4: In February 2016, the Respondent misled the Member during its investigation into his conduct when he provided false answers to the Member with respect to his knowledge of and involvement in referring clients to purchase investments outside the Member, contrary to MFDA Rule 2.1.1.
In its Decision and Reasons, the Hearing Panel imposed the following sanctions on the Respondent:
a) |
a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA; |
b) |
a fine in the amount of $75,000; and |
c) |
costs in the amount of $6,000. |
Copies of the Decision and Reasons and Notice of Hearing are available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent conducted business in the Richmond Hill, 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, Managing Director, Litigation, 416-943-4619, [email protected]
Share this article