December 29, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Sergio Salina (the “Respondent”). In its Notice of Hearing dated December 20, 2021 (“Notice of Hearing”), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: In July 2014, the Respondent recommended for the account of a 95 year old client a switch of approximately $498,511 from a no-load mutual fund to the same mutual fund which was subject to a seven year deferred sales charge schedule, without ensuring that the recommendation was suitable having regard to the essential Know-Your-Client factors relevant to the client, contrary to the Member’s policies and procedures and MFDA Rules 2.2.1, 2.5.1, 1.1.2, 2.1.1, or 2.1.4.
Allegation #2: Between March 2016 and November 2016, the Respondent failed to immediately disclose to the Member that he had been named a beneficiary in a deceased client’s will and continued to act as the Approved Person responsible for servicing the estate account, thereby failing to disclose a conflict or potential conflict of interest to the Member or otherwise ensure that it was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 1.1.2, and 2.5.1.
Allegation #3: Between 2010 and 2018, the Respondent obtained and possessed 24 pre-signed account forms in respect of 13 clients, and altered 1 account form without obtaining the client’s initials in respect of 1 client, contrary to the Member’s policies and procedures and MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Pacific Regional Council on February 22, 2022 at 11:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural issues. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Victoria, 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 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.
 On June 30, 2021, MFDA Rule 2.1.4 was amended to conform with client focused reform amendments to National Instrument 31-103 that came into effect on the same day. As the conduct addressed in this Notice of Hearing pre-dated the amendment to this Rule, all allegations set out in this Notice of Hearing that make reference to that Rule concern the version of the Rule that was in effect between February 27, 2006 and June 30, 2021.