TORONTO, Dec. 7 /CNW/ - A Settlement Hearing in the matter of Mark Kricievski 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 Mr. Kricievski and MFDA Staff, as a consequence of which Mr. Kricievski:
- has paid a fine in the amount of $5,000; and
- shall be prohibited from being registered or conducting securities
related business while in the employ of, or associated with, a Member
of the MFDA for a period of 5 years.
The Hearing Panel advised that it would issue written reasons for its decision in due course.
In the Settlement Agreement, Mr. Kricievski admitted that 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 approximately $1.8 million of Portus Alternative Asset Management Inc. ("Portus") investment products to 44 clients, contrary to MFDA Rules 1.1.1(a) and 2.1.1.
Mr. Kricievski also admitted that he contravened the Member's written direction and subsequent oral direction that he refrain from selling, referring or facilitating the sale of investment products offered by Portus to clients, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1. He further admitted that he sent communications to clients which:
a) contained untrue and misleading statements about the Portus
investment products, contrary to MFDA Rules 2.7.2(a) and 2.8.2(a);
b) included unjustified promises of specific results and made
unwarranted claims in relation to Portus investment products,
contrary to MFDA Rules 2.7.2(b) and 2.8.2(b);
c) failed to fairly present the potential risks to clients of investing
in Portus investment products, contrary to MFDA Rules 2.7.2(e) and
d) were detrimental to the interests of clients because they recommended
the purchase of an investment, being the Portus investment products,
that had not been approved for sale by the Member, contrary to MFDA
Rules 2.7.2(f) and 2.8.2(c); and
e) had not been approved by an individual designated by the Member as
being responsible for sales communications prior to Mr. Kricievski
sending the communications to the clients, contrary to MFDA Rule
A copy of the Settlement Agreement 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 144 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 firstname.lastname@example.org