March 9, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Cuiqin Ammy Yang (“Respondent”) by Notice of Hearing dated July 10, 2017.
A disciplinary hearing in this matter was held yesterday in Toronto, Ontario before a three-member Hearing Panel of the MFDA’s Central Regional Council. After hearing submissions from 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 against the Respondent:
Allegation #1: On or about October 30, 2012, she altered two account forms without evidence of client consent and submitted the altered account forms directly to the fund company to process trades, contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 2.10 and 1.1.2.
Allegation #2: Between October 23, 2012 and December 14, 2012, she submitted 18 account forms directly to fund companies to process trades in the accounts of four clients without the knowledge or approval of the Member, contrary to the policies and procedures of the Member and MFDA Rules 1.1.1(a), 2.1.1, 2.10 and 1.1.2.
Allegation #3: Commencing on April 28, 2016, she has failed to cooperate with an investigation into her activities conducted by Staff of the MFDA, contrary to section 22.1 of MFDA By-law No. 1.
The Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition on the authority of the Respondent to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $75,000; and
- costs in the amount of $10,000.
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 83,000 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.