MFDA issues Notice of Settlement Hearing in respect of Global Maxfin Investments Inc. and Issam El-Bouji

TORONTO, May 28, 2015 The Mutual Fund Dealers Association of Canada ("MFDA") announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA's Central Regional Council.   

The settlement agreement will be between Staff of the MFDA and Global Maxfin Investments Inc. ("Global Maxfin") and Issam ("Sam") El-Bouji ("El-Bouji") (the "Respondents") and involves matters for which the Respondents may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed agreement concerns allegations 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 El-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, El-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.

The settlement hearing is scheduled to take place on June 17, 2015, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the hearing can be held, in the hearing room at the MFDA offices, located at 121 King Street West, Suite 1000, Toronto, Ontario. The hearing will be open to the public, unless and to the extent that the Hearing Panel determines that all or part of the hearing should proceed in the absence of the public. If the Hearing Panel accepts the settlement agreement, then a copy of the decision of the Hearing Panel and the settlement agreement will be made available to the public.

A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, 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 104 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

Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]