August 8, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Zichao Wu (“Respondent”) was held yesterday in Vancouver, British Columbia before a Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated June 3, 2018 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of four months;
- a fine payable in the amount of $5,000 (“Fine”);
- costs payable in the amount of $2,500 (“Costs”);
- payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
- $2,500 (Costs) upon acceptance of the Settlement Agreement;
- $555.55 (Fine) on or before August 31, 2018;
- $555.55 (Fine) on or before September 28, 2018;
- $555.55 (Fine) on or before October 31, 2018;
- $555.55 (Fine) on or before November 30, 2018;
- $555.55 (Fine) on or before December 31, 2018;
- $555.55 (Fine) on or before January 31, 2019;
- $555.55 (Fine) on or before February 28, 2019;
- $555.55 (Fine) on or before March 29, 2019; and
- $555.55 (Fine) on or before April 30, 2019;
In the Settlement Agreement, the Respondent admitted that between August 29, 2016 and September 23, 2016, he signed the signatures of four clients on six account forms and submitted the forms to the Member for processing, contrary to MFDA Rule 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Vancouver, 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 82,000 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.