TORONTO, Dec. 10, 2013 /CNW/ - The MFDA today announced that it has
commenced disciplinary proceedings in respect of Arsenio Sobrevilla
(the "Respondent"). MFDA staff alleges in its Notice of Hearing that
the Respondent engaged in the following conduct contrary the By-laws,
Rules or Policies of the MFDA:
Allegation #1: Between June 2006 and March 2007, the Respondent prepared and
submitted new client account forms and loan applications for client JF,
clients EQ and SQ, client AM, and clients CV and NV which the
Respondent knew or ought to have known contained false, incorrect or
misleading information, thereby failing to observe high standards of
ethics and conduct in the transaction of business and engaging in
conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
Allegation #2: Between June 2006 and March 2007, the Respondent misrepresented,
failed to fully and adequately explain, or omitted to explain the
risks, benefits, material assumptions, features, and costs of a
leveraged investment strategy that he recommended and implemented in
the accounts of client JF, clients EQ and SQ, client AM, and clients CV
and NV, thereby failing to ensure that the leveraged investment
strategy was suitable for the clients and in keeping with their
investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between June 2006 and March 2007, the Respondent failed to ensure that
the leveraged investment strategy that he recommended and implemented
in the accounts of client JF, clients EQ and SQ, client AM, and clients
CV and NV was suitable for the clients and in keeping with their
investment objectives, having regard to the clients' relevant
"Know-Your-Client" information and financial circumstances, including
but not limited to the clients' ability to afford the costs associated
with the investment loans and withstand investment losses, contrary to
MFDA Rules 2.2.1 and 2.1.1.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Prairie Regional Council on
January 21, 2014 at 10:00 a.m. (Mountain) in the MFDA hearing room
located at 800 - 6th Avenue S.W., Suite 850, Calgary, Alberta. The
purpose of the appearance is to set a date for the hearing of this
matter on its merits and to address any other procedural matters and
will be open to the public, except as may be required for the
protection of confidential matters. The Hearing on the Merits will take
place in Winnipeg, Manitoba at a time and venue to be announced.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent
carried on business in Winnipeg, Manitoba.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 113 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:
Managing Director, Enforcement
Vice-President, Prairie Region