TORONTO, April 15 /CNW/ - A disciplinary hearing in the matter of Wijaysri Sivasubramanian
concluded yesterday in Toronto, Ontario before a three-person Hearing
Panel of the MFDA's Central Regional Council. After hearing submissions
from Staff of the MFDA, the Hearing Panel found that the following
allegations against the Respondent had been established:
Allegation #1: Between 2002 and 2009, the Respondent engaged in securities related
business that was not carried on for the account of and through the
facilities of the Member by recommending and facilitating loans by at
least nine clients and two individuals in three companies that the
Respondent owned and/or operated, contrary to MFDA Rules 1.1.1 and
Allegation #2: Between 2002 and 2009, the Respondent had and continued in another
gainful occupation that was not disclosed to or approved by the Member
by recommending and facilitating loans by at least nine clients and two
individuals to three companies that the Respondent owned and/or
operated, contrary to MFDA Rules 1.2.1 (c) and 2.1.1.
Allegation #3: Between 2002 and 2009, the Respondent failed to disclose to nine
clients and two individuals who invested in three companies the extent
of his interest in the three companies, thereby placing his own
interests above those of the clients and individuals and giving rise to
an actual or potential conflict of interest which he failed to address
by the exercise of responsible business judgment influenced only by the
best interests of the clients and individuals, contrary to MFDA Rules
2.1.1 and 2.1.4.
Allegation #4: Between 2002 and 2009, the Respondent solicited and accepted a total
amount of approximately $756,000 from nine clients and two individuals
to be invested in three companies that the Respondent owned and/or
operated and has failed to return or account for most of the monies,
contrary to MFDA Rule 2.1.1.
Allegation #5: Commencing on or about May 25, 2009, the Respondent has failed to
respond to MFDA Staff and provide answers to undertakings given during
his MFDA interview, contrary to section 22 of MFDA By-law No. 1.
The Hearing Panel made the following orders at the conclusion of the
hearing and advised that it will 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 global fine in the amount of $1,000,000; and
The Respondent shall pay costs in the amount of $25,000.
A copy of the Amended 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:
416-943-4672 or firstname.lastname@example.org