May 19, 2022 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Hon Ting (Patrick) Yung (the “Respondent”) by Notice of Hearing dated November 24, 2021 (“Notice of Hearing”).
A disciplinary hearing in this proceeding was held today electronically by videoconference before a three-member Hearing Panel of the MFDA’s Central Regional Council. After receiving evidence and hearing submissions by Staff of the MFDA, the Hearing Panel found that the two allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: Between October 2017 and October 4, 2019 the Respondent misappropriated or failed to account for monies obtained from clients and other individuals, contrary to MFDA Rule 2.1.1.
Allegation #2: Commencing November 27, 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
Following submissions from Staff of the MFDA with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $300,000; and
- costs in the amount of $10,000.
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 80,000 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.