MFDA Hearing Panel issues Reasons for Decision in the matter of Chun-Yi Tay
May 23, 2018 (Toronto, Ontario) – A Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision dated May 18, 2018 in connection with a disciplinary hearing held in Vancouver, British Columbia on January 25, 2018 in the matter of Chun-Yi Tay (“Respondent”).
In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- shall pay a fine in the amount of $5,000, payable to the MFDA in twelve monthly installments commencing February 1, 2018. If any installment payment is missed, the full remaining balance of the fine is due and payable immediately.
In the Agreed Statement of Facts dated January 14, 2018, the Respondent admitted that:
- between May 26, 2015 and June 3, 2015, she processed two redemptions in the total amount of $51,200 USD, based upon email instructions received from a third party individual, who gained unlawful access to a client’s email account and subsequently misappropriated the proceeds of the redemptions, thereby failing to comply with the Member’s policies and procedures that prohibited its Approved Persons from accepting instructions from clients by email, contrary to MFDA Rules 1.1.2, 2.5.1, and 2.1.1; and
- on or about June 3, 2015, she misrepresented to the Member that she had spoken with a client to confirm the client’s instructions to process a transaction, thereby failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1.
Copies of the Reasons for Decision and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Richmond, 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.