TORONTO, April 16, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Daniel Lipovetsky (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 2007 and 2009, the Respondent engaged in personal financial dealings with at least two clients by borrowing $10,000 from client PJ and $10,000 from client DB, thereby giving rise to a conflict or potential conflict of interest between the Respondent and each of clients PJ and DB, which conflicts the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between 2007 and June 30, 2009, the Respondent failed to comply with the Member's policies and procedures prohibiting Approved Persons borrowing from clients, thereby interfering with the ability of the Member to supervise the Respondent and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and 2.5.1, and MFDA Rule 2.1.1.
Allegation #3: Commencing on or about May 4, 2012, the Respondent has failed to attend an interview to provide a statement as requested by MFDA Staff during the course of an 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's Central Regional Council on June 4, 2013 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. 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 MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 115 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
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