February 6, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Ismail Cassim (“Respondent”) took place yesterday in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated January 29, 2019 (“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 a MFDA Member for a period of one year;
- a fine in the amount of $15,000 (“Fine”);
- costs in the amount of $5,000 (“Costs”);
- the Fine and Costs shall be paid in monthly installments as follows:
- $5,000 on February 5, 2019;
- $2,500 on or before March 4, 2019;
- $2,500 on or before April 4, 2019;
- $2,500 on or before May 4, 2019;
- $2,500 on or before June 4, 2019;
- $2,500 on or before July 4, 2019; and
- $2,500 on or before August 4, 2019.
In the Settlement Agreement, the Respondent admitted that:
- between 2012 and January 15, 2015, he collected, maintained or used at least 123 blank pre-signed and photocopied client account forms in respect of 28 clients, contrary to the Member’s policies and procedures, and MFDA Rule 2.1.1;
- between December 2011 and September 2014, he processed at least 166 trades in 22 client accounts without recording or maintaining adequate evidence of any trade instructions provided by clients, contrary to the Member’s policies and procedures, and MFDA Rules 5.1(b), 2.5, 1.1.2, and 2.1.1; and
- On July 24, 2012, he misled MFDA Staff during the course of its sales compliance examination of his branch, contrary to MFDA Rule 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 Brampton, Ontario 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 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.