July 11, 2017 (Toronto, Ontario) – A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario on June 29, 2017 in the matter of Ravi Malhotra (“Respondent”). The Reasons for Decision relate to the Hearing Panel’s acceptance of the settlement agreement (“Settlement Agreement”) entered into between the Respondent and Staff of the MFDA.
In its Reasons for Decision dated July 10, 2017, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular:
- a fine in the amount of $7,500; (“Fine”);
- costs in the amount of $2,500; (“Costs”);
- shall pay the Fine and Costs in certified funds as follows:
- $1,500 payable upon entering into the Settlement Agreement; and
- $8,500 payable on July 28, 2017;
- if Malhotra fails to make any of the payments described above, any outstanding balance of the Fine and Costs shall become immediately due and payable to the MFDA and Malhotra shall be immediately suspended from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA until such time as the total amount of the Fine and Costs owed by Malhotra is paid to the MFDA;
- shall be prohibited from acting in the capacity of branch manager for a period of three (3) months; and
- shall in the future comply with MFDA Rule 2.1.1.
Copies of the Reasons for Decision and Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Greater Toronto 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 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.