March 20, 2019 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Neil Kumar (“Respondent”) by Notice of Hearing dated May 23, 2018.
A disciplinary hearing in this proceeding was held on March 18, 2019 in Toronto, Ontario before a three-member Hearing Panel of the MFDA’s Central Regional Council. After receiving evidence and hearing submissions from the parties, 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 finding of misconduct:
Allegation #1: Between July 2015 and March 2016, the Respondent:
- submitted a loan application for himself which contained false information about his assets and liabilities, and also contained a fabricated account statement;
- submitted a line of credit application for himself which contained false information about his assets and liabilities;
- arranged for two individuals to submit line of credit applications which he knew, or ought to have known, contained false information about their assets, and also contained fabricated account statements; and
- processed a loan application for a client which he knew, or ought to have known, contained a fabricated account statement,
thereby failing to observe high standards of ethics and conduct in the transaction of business, or engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1.
Allegation #2: Commencing in August 2016, the Respondent failed to cooperate with MFDA Staff during the course of investigations into his conduct and failed to facilitate access to documents and other records requested by Staff, contrary to sections 22.1 and 22.2 of MFDA By-law No. 1.
After hearing submissions from the parties with respect to penalty, the Hearing Panel reserved its decision and advised that it will issue its decision and written reasons in due course.
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 Mississauga, Ontario, 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 81,000 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.