The subject matter of the proposed Settlement Agreement concerns matters for which the Respondent may be disciplined as an Approved Person of the MFDA, pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA.
- The proposed Settlement Agreement concerns allegations that the Respondent:
- solicited and facilitated investments in an exempt product that were processed off the books and records of the Member without first exercising adequate due diligence to ensure that he understood the product sufficiently to ‘know the product’, the regulatory requirements applicable to the sale of the product and the risks of the product, contrary to MFDA Rules 1.1.1, 2.2.1 and 2.l.1;
- knew or ought to have known that the solicitation of investments in an exempt product that he offered to clients gave rise to a conflict of interest that he failed to disclose to clients in writing or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1; and
- sent an improper client communication to a client that included assertions that were potentially misleading and likely to unjustifiably diminish the client’s concerns about the gravity of a disciplinary proceeding that the MFDA had commenced, contrary to MFDA Rules 2.8.2, 2.1.4, 2.2.1 and 2.1.1.
- MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure.
Michelle PongMichelle PongDirector of Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9
E-mail: [email protected]