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File No. 2016111

IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Annaji Kumar

Order

WHEREAS on December 15, 2016, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Annaji Kumar (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated December 14, 2016 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that:

  1. on or about June 19, 2015, the Respondent falsified a client signature on an account form, contrary to MFDA Rule 2.1.1;
  2. between 2004 and June 2015, the Respondent falsified and used to process transactions, 2 account forms in respect of 2 clients, by altering information on the account form without obtaining client initials authorizing the alterations, contrary to MFDA Rule 2.1.1;
  3. between 2004 and June 2015, the Respondent, obtained, possessed, and used to process transactions, 2 pre-signed account forms in respect of 2 clients, contrary to MFDA Rule 2.1.1; and
  4. between October 2009 and June 2015, acting in his capacity as branch manager, the Respondent reviewed and approved the use of an account form containing a falsified client signature, a falsified account form and a pre-signed account form;

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which;

  1. The Respondent shall be prohibited from conducting securities related business in the employ of or associated with a Member of the MFDA for a period of 6 months, pursuant to s. 24.1.1(e) of MFDA By-law No.1;
  1. The Respondent shall pay costs in the amount of $1,500 pursuant to s. 24.2 of MFDA By-law No.1 (“Costs”);
  1. The Respondent shall pay Costs in certified funds as follows:
    1. $900 payable upon entering into the Settlement Agreement; and
    2. $600 on July 27, 2017;
  1. Prior to being re-designated as a branch manager, the Respondent shall first successfully complete the branch manager’s course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada, pursuant to 24.1.1(f) of MFDA By-law No.1;
  1. The Respondent shall in the future comply with MFDA Rules 2.1.1 and 2.5.5(f); and
  1. If at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.

DATED: Apr 27, 2017

"Paul M. Moore, Q.C."

Paul M. Moore, Q.C.

Chair


"Joe Yassi"

Joe Yassi

Industry Representative


"Robert C. White"

Robert C. White

Industry Representative


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