December 29, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Chanrith Yin (the “Respondent”). In its Notice of Hearing dated December 21, 2021 (“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 March 2014 and July 2019, the Respondent misappropriated or otherwise failed to account for monies from clients and another individual, contrary to MFDA Rule 2.1.1.
Allegation #2: Between March 2014 and July 2019, the Respondent solicited or obtained monies from clients and another individual to invest in unapproved investments outside the Member, thereby engaging in:
- securities related business that was not carried on for the account of the Member and through the facilities of the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.1.1, 2.1.1, 1.1.2, and 2.5.1; or
- personal financial dealings with the clients, which gave rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member, or failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.4,1.1, 1.1.2, and 2.5.1.
Allegation #3: Between November 2012 and January 20, 2020, the Respondent engaged in an outside business activity that was not disclosed to or approved by the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.2.1(c) (now 1.3), 2.1.1, 1.1.2, and 2.5.1.
Allegation #4: Commencing in January 2020, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-Law No. 1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on January 28, 2022 at 10:00 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 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 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.