February 3, 2023 (Toronto, Ontario) – A settlement hearing in the matter of Nazim Mohammed (the “Respondent”) was held electronically by videoconference on January 19, 2023 in Toronto, Ontario before a three-member Hearing Panel of the Ontario District Hearing Committee of the New Self-Regulatory Organization of Canada (“New SRO”).
The Hearing Panel accepted the settlement agreement dated October 7, 2022 (the “Settlement Agreement”), between Staff of New SRO and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:
- a suspension from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member registered as a mutual fund dealer (formerly Members of the MFDA) for a period of two (2) years, commencing January 19, 2023;
- a fine in the amount of $15,000; and
- costs in the amount of $5,000.
In the Settlement Agreement, the Respondent admitted that in July 2014, he:
- failed to use due diligence to learn the essential facts relative to clients RM and LM and accurately record the essential facts on Know-Your-Client information Forms, contrary to MFDA Rules 2.2.1 and 2.1.1;
- recommended that clients RM and LM borrow monies from the cash values of their life insurance policies and that LM use the proceeds to purchase a mutual fund without using due diligence to ensure that the recommendation was suitable for the clients, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- recommended that client LM purchase a mutual fund that was subject to a 7-year deferred sales charge schedule without using due diligence to ensure that the recommendation was suitable for client LM, 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 Markham, Ontario area.
New Self-Regulatory Organization of Canada is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. New SRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada, and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.newselfregulatoryorganizationofcanada.ca.