TORONTO, Nov. 28, 2011 /CNW/ - The Mutual Fund Dealers Association of
Canada today announced that it has commenced disciplinary proceedings
in respect of Muchoki Fungai Simba (the "Respondent"). MFDA staff
alleges in its Notice of Hearing that the Respondent engaged in the
following conduct contrary to the By-laws, Rules or Policies of the
Allegation #1: Between February 14, 2006 and November 18, 2009, the Respondent engaged
in personal financial dealings with client BS by borrowing a total of
$49,000 from client BS, of which amount the Respondent failed to repay
or otherwise account for $43,400, contrary to MFDA Rules 2.1.4 and
Allegation #2: Commencing on or about November 20, 2009, the Respondent failed to
return all client files and property of the Member and its affiliates
to the Member, thereby:
failing to comply with MFDA Rules 1.1.2, 1.1.5(f) and 2.1.1
failing to comply with the Member's policies and procedures, contrary to
MFDA Rules 1.1.2, 2.5.1 and 2.1.1; and
interfering with the Member's ability to comply with the requirements of
MFDA Rule 5.1 to keep such books, records and documents as are
necessary for the proper recording of its business transactions,
financial affairs and the transactions it executes on behalf of others,
contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1.
Allegation #3: Commencing on or about September 24, 2010, the Respondent failed to
provide information and produce documentation requested by Staff of the
MFDA during the course of an investigation, contrary to section 22.1 of
MFDA By-law No. 1.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Central Regional Council on
December 7, 2011 at 10:00 a.m. (Eastern) in the MFDA Hearing Room
located at 121 King Street West, Suite 1000, Toronto, Ontario.
The purpose of the first appearance is to schedule the date for the
commencement of the hearing on its merits and to address any other
procedural matters, and will be open to the public, except as may be
required for the protection of confidential matters.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 130 Members and their approximately 75,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
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