TORONTO, March 24 /CNW/ - A Settlement Hearing in the matter of Alan Roy Kruss (the "Respondent") was held today in Toronto, Ontario before a Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (the "MFDA").
The Hearing Panel approved the Settlement Agreement between the Respondent and MFDA Staff, as a consequence of which the Respondent:
(a) has paid a fine in the amount of $10,000;
(b) has been suspended from acting as a mutual fund salesperson for
(c) shall make a payment to client KS in the amount of $50,000;
(d) has paid costs of the MFDA's investigation in the amount of $2,500;
(e) shall successfully complete the IFSE (IFIC) Mutual Fund Dealer
Compliance course. If the Respondent does not successfully complete
the course within one year, the suspension from acting as a mutual
fund salesperson shall resume until such time as he successfully
completes the course; and
(f) shall comply with all MFDA By-laws, Rules and Policies, and all
applicable securities legislation and regulations made thereunder.
The Hearing Panel advised that it would issue written reasons for its decision in due course.
In the Settlement Agreement, the Respondent admitted that between 2004 and 2006, while an Approved Person at two consecutive Members, he 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 $50,000 of an investment product to a client on two separate occasions, when that investment product had not been approved for sale by the Member, contrary to MFDA Rule 1.1.1.
A copy of the Settlement Agreement, containing more particulars with respect to the terms of settlement than reproduced here, 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 141 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: For further information: Shaun Devlin, Vice-President, Enforcement, (416) 943-4672 or email@example.com