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.
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
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