November 20, 2017 (Toronto, Ontario) – A settlement hearing in the matter of Pragya Kakkar (“Respondent”) was held on November 17, 2017 in Edmonton, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $7,500 (“Fine”);
- costs in the amount of $2,500 (“Costs”);
- the payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
- $2,500 (Fine) upon acceptance of the Settlement Agreement;
- $2,500 (Costs) upon acceptance of the Settlement Agreement;
- $2,500 on or before the last business day of the 3rd month following the date of the acceptance of the Settlement Agreement;
- $2,500 on or before the last business day of the 6th month following the date of the acceptance of the Settlement Agreement;
- if the Respondent fails to make any of the installment payments described above:
- any outstanding balance of the Fine owed by the Respondent shall become immediately due and payable to the MFDA; andshe shall be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine owed is paid to the MFDA; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admitted that between February 2016 and July 2016, she obtained, possessed, and used to process transactions, 14 pre-signed account forms in respect of six (6) clients, contrary to MFDA Rule 2.1.1.
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 83,000 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.