September 20, 2017 (Toronto, Ontario) – A settlement hearing in the matter of Brian Leonard Sukhdeo (“Respondent”) was held on September 19, 2017 in Toronto, Ontario before a three-member Hearing Panel of the Central 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:
- shall be prohibited for a period of 24 months from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member;
- shall, within 30 days of the acceptance of the Settlement Agreement, pay a fine in the amount of $7,500; and
- shall immediately pay costs in the amount of $2,500.
In the Settlement Agreement, the Respondent admitted that:
- from May 2011 to October 2012, he opened a new account at the Member for a client that he never met or received instructions from and failed to perform the necessary due diligence to learn the essential facts relative to client MW and failed to ensure that the investments were suitable and appropriate for the client MW, thereby engaging in conduct contrary to MFDA Rules 2.2.1 and 2.1.1; and
- between March 2014 and May 2017, he borrowed $32,400 from a client, thereby engaging in personal financial dealings with a client which gave rise to a conflict of interest or potential conflict of interest that he failed to disclose to the Member and/or address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.1 and 2.1.4.
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.
DM 573631 v1