January 12, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Paul Singh Gill ( “Respondent”) by Notice of Hearing dated July 19, 2017 (“Notice of Hearing”).
The hearing of this matter on its merits took place on January 11, 2018 in Vancouver, British Columbia before a Hearing Panel of the MFDA’s Pacific Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated September 12, 2017, in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:
- on December 19, 2015, he signed the signatures of three (3) clients on two (2) Know-Your-Client forms and on one (1) account form, contrary to MFDA Rule 2.1.1;
- on December 19, 2015, he failed to use due diligence to learn the essential facts of the client when he completed the information on two (2) Know-Your-Client forms without having met or discussed the information with the clients, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- on December 19, 2015, he falsely represented to his branch manager that he had contacted clients and obtained their signatures on account forms, when he knew this to be incorrect, contrary to MFDA Rule 2.1.1.
Following submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one (1) year;
- shall pay a fine in the amount of $5,000; and
- shall pay costs in the amount of $2,500.
Copies of the Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in the Surrey, 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 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.