MFDA Hearing Panel approves Settlement Agreements with Stephen Cheung and Cho Shan Yeung

TORONTO, Sept. 15, 2015 /CNW/ - A settlement hearing in the matter of Stephen Cheung ("Cheung") and Cho Shan Yeung ("Yeung") (the "Respondents") was held yesterday 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 agreements ("Settlement Agreements") between Staff of the MFDA and the Respondents, as a consequence of which the Respondents:

Cheung

i)

is prohibited from acting in a compliance or supervisory capacity with a Member for a period of three (3) months from the date of the acceptance of the Settlement Agreement;  

ii)

has paid a fine in the amount of $12,500;

iii)

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

iv)

in the future, shall comply with all MFDA By-laws, Rules and Policies and all applicable securities legislation and regulations made thereunder including MFDA Rule 2.1.1.

Yeung

i)

has paid a fine in the amount of $2,500;

ii)

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

iii)

is prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of two (2) years, commencing from the date of the Hearing Panel's Order; and

iv)

in the future, shall comply with all MFDA By-laws, Rules and Policies and all applicable securities legislation and regulations made thereunder including MFDA Rule 2.1.1

 

In the Settlement Agreements, the Respondents admitted that:

a)

between July 27, 2005 and February 6, 2013, Cheung obtained and used to process transactions, 74 blank or partially complete pre-signed account forms or photocopies of blank or partially complete pre-signed account forms, in respect of 22 client accounts, contrary to MFDA Rule 2.1.1;

b)

between March 2005 and March 2012, in his capacity as branch manager, Cheung reviewed and approved 21 blank or partially completed pre-signed forms, or photocopies of blank or partially complete pre-signed account forms, submitted by other Approved Persons, contrary to MFDA Rules 2.5.5(f) and 2.1.1; and

c)

between March 5, 2005 and March 20, 2012, Yeung obtained and used 101 blank or partially complete pre-signed account forms or photocopies of partially complete pre-signed account forms, in order to process transactions in respect of nine clients, contrary to MFDA Rule 2.1.1.

Copies of the Settlement Agreements are available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreements, the Respondents carried on business in Richmond, 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 103 Members and their approximately 80,000 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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