MFDA Hearing Panel approves Settlement Agreement with Lakhjit Sarang

TORONTO, March 3, 2016 /CNW/ - A settlement hearing in the matter of Lakhjit Singh Sarang (the "Respondent") was held on March 1, 2016 in Vancouver, British Columbia before a three-person Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:

i)       

has paid a fine in the amount of $7,500;

ii)      

has paid costs in the amount of $2,500; and

iii)    

has been permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, commencing from the date of the Hearing Panel's Order.

In the Settlement Agreement, the Respondent admitted 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.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, 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 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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