June 12, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Shahin Golestani (“Respondent”) was held yesterday in Vancouver, British Columbia before a Hearing Panel of the Pacific 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 prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of two years;
- a fine payable in the amount of $5,000; and
- costs payable in the amount of $2,500.
In the Settlement Agreement dated April 25, 2018, the Respondent admitted that between November 7, 2014 to May 6, 2015, he failed to use due diligence to learn and accurately record Know-Your-Client information, for 21 client accounts and ensure that each order accepted and recommendation made for the accounts of clients was suitable for the client, contrary to MFDA Rules 2.2.1 and 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Burnaby, 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.