TORONTO, Feb. 11 /CNW/ - A disciplinary hearing in the matter of Tadeusz
("Ted") Bytnar (the "Respondent") concluded yesterday in Calgary,
Alberta before a three-person Hearing Panel of the MFDA's Prairie
After hearing submissions from Staff of the MFDA, the Hearing Panel
found that the following allegations in the Notice of Hearing had been
Allegation #1: In 2003 and 2005, the Respondent engaged in securities related business
that was not carried on for the account of the Member and through the
facilities of the Member by selling, referring, or facilitating the
sale of an investment product that was not approved for sale by the
Member to four individuals, two of whom were clients of the Member,
contrary to MFDA Rules 1.1.1, 2.4.2 and 2.1.1.
Allegation #2: In 2003 and 2005, the Respondent engaged in a dual occupation that was
not disclosed to and approved by the Member by selling, referring or
facilitating the sale of an investment product to four individuals, two
of whom were clients of the Member, contrary to MFDA Rules 1.2.1(c) and
Allegation #3: In 2008 and 2009, the Respondent interfered with the ability of the
Member to conduct a reasonable supervisory investigation of the
Respondent's conduct by providing false and misleading responses to the
Member in the course of its investigation, contrary to MFDA Rules 1.1.2
and 2.5.1, and 2.1.1.
Allegation #4: Commencing August 2009, by failing to comply with a request by MFDA
Staff that he provide copies of bank statements for the material time
under investigation, the Respondent failed to cooperate with an MFDA
investigation, contrary to section 22.1 of MFDA By-law No. 1.
The Hearing Panel made the following orders at the conclusion of the
hearing and advised that it would issue written reasons for its
decision in due course:
The Respondent is permanently prohibited from conducting securities
related business in any capacity while in the employ of or associated
with any Member of the MFDA;
The Respondent shall pay a fine in the amount of:
(i) $50,000 for failure to cooperate with an MFDA investigation;
(ii) $90,000 for securities related business outside the Member/
undisclosed dual occupation; and
(iii) $10,000 for interfering with the Member's ability to conduct a
reasonable supervisory investigation.
The Respondent shall pay costs to the MFDA in the amount of $7,500.
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 136 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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