MFDA Hearing Panel makes findings against Tadeusz Bytnar

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 Regional Council.

After hearing submissions from Staff of the MFDA, the Hearing Panel found that the following allegations in the Notice of Hearing had been established:

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 2.1.1.

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

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-6472 or sdevlin@mfda.ca


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