MFDA announces settlement hearing to take place in respect of Lakhjit Sarang

TORONTO, Feb. 9, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Lakhjit Singh Sarang (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated September 9, 2015.

As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this proceeding will take place on March 1, 2016, commencing at 10:00 a.m. (Pacific), in the hearing room at the British Columbia Securities Commission, located at 1200-701 West Georgia Street, Vancouver, British Columbia.

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that:



a)     

between about September 2010 and July 2013, he engaged in personal financial dealings with a client when he borrowed $29,015 from the client, or arranged for the client to loan $29,015 to a third party, for investment in a non-arm's length corporation, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1;





b)     

between about June 2010 and April 2013, he had and continued in other gainful occupation which was not disclosed to and approved by the Member when he was a shareholder and director of a corporation, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)) , 1.1.2, 2.5.1, and 2.1.1; and





c)     

in October 2011, he misled the Member by falsely answering the Member's annual compliance certification with regards to personal financial dealings with a client and other gainful occupations outside the Member, thereby interfering with the Member's ability to supervise the Respondent and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.

The hearing will be open to the public, unless and to the extent that the Hearing Panel determines that all or part of the hearing should proceed in the absence of the public. If the Hearing Panel accepts the settlement agreement, then a copy of the decision of the Hearing Panel and the settlement agreement will be made available to the public.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Surrey, British Columbia.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 99 Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.

SOURCE Mutual Fund Dealers Association of Canada

For further information: Charles Toth, Director, Litigation, 416-943-4619, ctoth@mfda.ca; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, jmount@mfda.ca

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