WHEREAS on December 18, 2018, 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 Shah Financial Planning Inc. (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated December 20, 2018 (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 WHERAS the Settlement Hearing was held on March 27, 2019 during which time the Hearing Panel considered the Settlement Agreement and submissions of Staff and the Respondent’s President and Chief Executive Officer;
AND WHEREAS the Hearing Panel is of the opinion that between at least January 2013 and August 2017, the Respondent failed to establish, implement and maintain adequate procedures to supervise and ensure the suitability of leveraged investment recommendations made by its Approved Persons to clients, contrary to MFDA Rules 2.2.1, 2.5, and 2.10 and MFDA Policy No. 2.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- The Respondent shall pay a fine in the amount of $20,000, pursuant to section 24.1.2(b) of By-law No. 1;
- The Respondent shall pay the costs of this proceeding and investigation in the amount of $5,000, pursuant to section 24.2 of By-law No. 1; and
- The Respondent shall in the future comply with MFDA Rules 2.1, 2.5, and 2.10 and MFDA Policy No. 2.
Malliha WilsonMalliha WilsonChair
Tim PryorTim PryorIndustry Representative
Michael CoulterMichael CoulterIndustry Representative