January 3, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Paul Moroz (“Respondent”). In its Notice of Hearing dated December 15, 2017, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between July 2008 and October 2013, the Respondent failed to ensure that the investment recommendations he made to clients A and B were suitable for them, contrary to the Member’s policies and procedures, and MFDA Rules 1.1.2, 2.2.1, 2.5.1, and 2.1.1.
Allegation #2: Between November 24, 2010 and June 23, 2011, the Respondent obtained, and used to facilitate transactions, at least 5 blank pre-signed Know-Your-Client update forms in respect of accounts held by clients A and B, contrary to MFDA Rule 2.1.1.
Allegation #3: Between January 2011 and June 2011, the Respondent failed to update material changes to client information on Know-Your-Client update forms when clients A and B informed the Respondent of the changes, contrary to MFDA Rules 2.2.4 and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on February 15, 2018 at 9:30 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters.
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.