MFDA Hearing Panel makes findings of misconduct and imposes sanctions against Lucillia Tan
TORONTO, Oct. 5, 2021 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Lucillia Sok Cheng Tan (the "Respondent") by Notice of Hearing dated March 17, 2021.
A disciplinary hearing in this proceeding was held by electronic hearing on October 4, 2021, before a three-member Hearing Panel of the MFDA's Pacific Regional Council. After receiving evidence and hearing submissions by Staff of the MFDA, the Hearing Panel found that the three allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: Between approximately August 22, 2012 and April 24, 2019, the Respondent engaged in outside business activities with respect to one or more real estate investment businesses which were not disclosed to or approved by the Member, contrary to the Member's policies and procedures, and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3)[1], 2.5.1, 1.1.2, and 2.1.1.
Allegation #2: Between approximately 2013 and April 24, 2020, the Respondent failed to disclose to the Member a conflict or potential conflict of interest that arose when clients of the Member invested with a real estate business owned or operated by the Respondent and her family, thereby failing to ensure that the conflict or potential conflict of interest was disclosed to the Member and addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #3: Commencing on approximately April 22, 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into her conduct, contrary to section 22.1 of MFDA By-law No. 1.
Following submissions from Staff of the MFDA with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $125,000; and
- costs in the amount of $10,000.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the Burnaby, British Columbia 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 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.
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1 MFDA Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3 effective March 17, 2016. |
SOURCE Mutual Fund Dealers Association of Canada
Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]
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