November 18, 2020 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Arman Pekel (“Respondent”) by Notice of Hearing dated January 22, 2020.
The hearing of this matter on its merits was held on November 16-17, 2020 by electronic hearing in Toronto, Ontario before a three-member Hearing Panel of the MFDA’s Central Regional Council. After hearing submissions from Staff of the MFDA with respect to misconduct, the Hearing Panel found that the three allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct against the Respondent:
Allegation #1: Between August 17, 2014 and March 8, 2018, the Respondent opened a new account for a client and falsely recorded the client’s address on the records of the Member as the Respondent’s personal address, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.1, 2.10, 2.5.1, or 1.1.2;
Allegation #2: Between February 1, 2017 and March 8, 2017, the Respondent deposited four cheques payable to a client, which constituted the proceeds of redemptions from the client’s investment account totaling approximately $14,038.25, into his personal bank account, thereby engaging in personal financial dealings with a client which gave rise to a conflict of interest that he failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 or 2.1.1; and
Allegation #3: Between March 6, 2017 and January 2, 2018, the Respondent engaged in an outside activity which was not disclosed to and approved by the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.3, 2.1.1, 2.5.1, or 1.1.2.
The Hearing Panel advised that it will issue written reasons for its decision as to misconduct in due course. Submissions with respect to sanctions will take place by electronic hearing on December 21, 2020 at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be heard. Members of the public who would like to participate should contact email@example.com to obtain particulars.
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.