TORONTO, Dec. 20, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of George William Popovich (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 August 2004 and February 2009, the Respondent failed to use due diligence to learn the essential facts relative to clients SM, MH, WC and PC, GL, and SL and accurately record the essential facts on the clients' New Account Application Forms, contrary to MFDA Rules 2.2.1(a) and 2.1.1.
Allegation #2: Between August 2004 and February 2009, the Respondent:
|(a)|| recommended and facilitated the implementation of a leveraged investment strategy in the accounts of clients SM, MH, and WC and PC;
|(b)||recommended and sold a "return of capital" mutual fund to clients GL and SL;|
without ensuring that the leveraged investment strategy and return of capital mutual fund was suitable for the clients, in keeping with the clients' investment objectives and within the bounds of good business practice, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between August 2004 and February 2009, the Respondent misrepresented or failed to adequately explain the risks, benefits, material assumptions and features of:
|(a)|| the leveraged investment strategy that he recommended and implemented in the accounts of clients SM, MH, and WC and PC;
|(b)||the return of capital mutual fund that he recommended and sold to clients SM, MH, WC and PC, GL, and SL;|
thereby failing to present the leveraged investment strategy and return of capital mutual fund to the clients in a fair and balanced manner, contrary to MFDA Rule 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 Central Regional Council on January 28, 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 117 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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