October 12, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (the “MFDA”) has commenced disciplinary proceedings in respect of Anthony Peter Chiaravalloti (the “Respondent”). In its Notice of Hearing dated September 22, 2021 (the “Notice of Hearing”), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between September 2015 and October 2015, the Respondent engaged in securities related business that was not carried on for the account of the Member or processed through its facilities by recommending, selling, or facilitating the sale of syndicated mortgage investments, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1, 2.1.1, 2.5.1, and 1.1.2.
Allegation #2: Between September 2015 and October 2015, the Respondent made a referral in respect of syndicated mortgage investments and received compensation for doing so, thereby participating in a referral arrangement to which the Member was not a party and which did not otherwise comply with sections 13.7 to 13.10 of National Instrument 31-103, the Member’s policies and procedures, and MFDA Rules 2.1.1 and 2.4.2.
Allegation #3: Between September 2015 and June 2019, the Respondent engaged in unapproved outside business activities, by:
- engaging in activities in relation to syndicated mortgage investments;
- establishing or operating two companies for which he was also a director; or
- engaging in activities with respect to a mediation business;
contrary to the Member’s policies and procedures, and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 2.1.1, 2.5.1, and 1.1.2.
Allegation #4: Between March 2015 and March 2019, the Respondent provided false or misleading statements to the Member on annual compliance questionnaires, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on November 19, 2021 at 10:30 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural issues. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact firstname.lastname@example.org 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 80,000 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.