TORONTO, March 2 /CNW/ - A Hearing Panel of the Central Regional Council
of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its
Decision and Reasons in connection with the disciplinary hearing held in
Toronto, Ontario on January 17, 2007 in respect of Lip Fee Chan.
The Hearing Panel found that the following allegations set out by MFDA
staff in the Notice of Hearing dated July 19, 2006, summarized below, had been
Allegation No.1: Between June 2000 and October 2002, Mr. Chan engaged in
securities related business outside of the accounts and facilities of his
Member, by facilitating the participation of a client in various
investments, contrary to MFDA Rule 1.1.1.
Allegation No.2: In the alternative to Allegation No.1, between June 2000
and October 2002, Mr. Chan engaged in gainful occupation outside the
business of his Member without so advising his Member and obtaining
approval of his Member, contrary to MFDA Rule 1.2.1(d).
Allegation No.3: Commencing May 2001, Mr. Chan failed to invest monies
that he received for investment purposes from the same client totaling
$98,000, and in so doing, placed his personal interests above those of
his client contrary to MFDA Rule 2.1.4, and failed to deal fairly,
honestly and in good faith with his client contrary to MFDA Rule
The following is a summary of the Orders made by the Hearing Panel:
- A permanent prohibition on Mr. Chan from engaging in any securities-
related business in any capacity while in the employ of or sponsored
by any MFDA Member,
- Fine in the aggregate amount of $150,000, and
- Costs in the amount of $7,500.
A copy of the Decision and Reasons is available on the MFDA website at
The Mutual Fund Dealers Association of Canada is the self-regulatory
organization for Canadian mutual fund dealers. The MFDA regulates the
operations, standards of practice and business conduct of its 163 Members and
their approximately 75,000 Approved Persons with a mandate to protect
investors and the public interest.
For further information:
For further information: please contact: Shaun Devlin, Vice-President,
Enforcement, (416) 943-4672, or firstname.lastname@example.org