MFDA issues Notice of Hearing regarding Domenic Fanelli and Michele Torchia



    TORONTO, June 23 /CNW/ - The Mutual Fund Dealers Association of Canada
("MFDA") today announced that it has commenced disciplinary proceedings
against Domenic Fanelli and Michele Torchia (the "Respondents").
    MFDA staff alleges in its Notice of Hearing that the Respondents engaged
in the following conduct contrary to the By-laws, Rules or Policies of the
MFDA:

    Allegation No. 1: Between July 2002 and September 2003, Fanelli was
    involved with outside business activity that was not disclosed to or
    approved by the Member, Investors Group Financial Services Inc. ("IG"),
    contrary to MFDA Rule 1.2.1(d)(iii).

    Allegation No. 2: Between February 2003 and September 2003, Fanelli
    engaged in securities related business that was not carried on for the
    account of IG or through the facilities of IG by recommending and
    facilitating the investment of client funds in a product unknown to and
    unapproved by IG, outside the Member, contrary to MFDA Rule 1.1.1(a).

    Allegation No. 3: Between February 2003 and September 2003, Fanelli sold
    the securities of a publicly traded company to individuals, thereby
    engaging in securities related business contrary to the terms of his
    registration as a mutual fund salesperson under the Securities Act
    (Ontario), R.S.O. 1990, c. S.5, as am. and MFDA Rule 2.1.1.

    Allegation No. 4: Between August 2002 and September 2003, Fanelli engaged
    in securities related business with clients of a Member, AXA Financial
    Services Inc. ("AXA") while registered as a mutual fund salesperson with
    another Member, IG, contrary to the terms of his registration as a mutual
    fund salesperson under the Securities Act (Ontario), R.S.O. 1990, c. S.5,
    as am. and MFDA Rules 2.1.1, 1.1.1 and 1.1.2.

    Allegation No. 5: Commencing on or about September 13, 2006, Fanelli
    failed to produce for inspection copies of bank statements requested by
    MFDA Staff during the course of an investigation, contrary to section
    22.1 of MFDA By-law No. 1.

    Allegation No. 6: Between November 25, 2002 and February 9, 2005, Torchia
    signed New Account Application Forms ("NAAFs") and processed trade
    documentation as the Approved Person for clients that he had not
    previously met nor received instructions from, thereby breaching his
    "Know Your Client" obligations and the standard of conduct; and thereby
    facilitating the processing of securities related business through the
    Member, AXA by Fanelli when Fanelli was not registered with AXA, contrary
    to MFDA Rules 2.1.1(c) and 2.2.1.

    Allegation No. 7: Commencing on or about May 24, 2006, Torchia failed to
    respond to a request from MFDA Staff to provide a written statement in
    response to a complaint from his client, JM; and commencing on or about
    April 17, 2007, Torchia failed to attend an interview to provide
    information concerning his conduct as requested by MFDA Staff during the
    course of its investigation, contrary to section 22.1 of MFDA By-law
    No. 1.

    The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA Central Regional Council in the Hearing
Room located at the offices of the MFDA, 121 King Street West, Suite 1000,
Toronto, Ontario on Tuesday, August 12, 2008 at 10:00 a.m. (Eastern) or as
soon thereafter as can be held.
    The purpose of the first appearance is to schedule the date for the
commencement of the hearing on its merits and to address any other procedural
matters.
    The first appearance is open to the public, except as may be required for
the protection of confidential matters. Members of the public attending the
first appearance will be able to listen to the proceeding by teleconference.
    A copy of the Notice of Hearing is available on the MFDA website at
www.mfda.ca.

    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 159 Members and
their approximately 75,000 Approved Persons with a mandate to protect
investors and the public interest.





For further information:

For further information: Shaun Devlin, Vice-President, Enforcement,
(416) 943-4672 or sdevlin@mfda.ca


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