TORONTO, April 11, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Kindle Briten Megan Blythe ("Blythe") and Mohammad Movassaghi ("Movassaghi") (or together referred to as the "Respondents"). In its Notice of Hearing dated March 21, 2019 ("Notice of Hearing"), Staff of the MFDA alleges that the Respondents engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA.
Allegation #1: Between April 2015 and October 2015, Movassaghi and/or Blythe falsified a client's signature on ten account forms, contrary to MFDA Rules 2.1.1, 2.10 and 1.1.2 and the policies and procedures of the Member.
Allegation #2: Between April 8, 2015 and June 9, 2015, Movassaghi and/or Blythe submitted to the Member 4 Know-Your-Client ("KYC") Update Forms without client X's knowledge or authorization, contrary to MFDA Rules 2.2.1, 2.1.1, 2.10, and 1.1.2, and the policies and procedures of the Member.
Allegation #3: Between January 2015 and June 2016, Movassaghi and/or Blythe processed at least 197 trades in the investment accounts of client X without the knowledge or authorization of client X, thereby engaging in unauthorized discretionary trading, contrary to MFDA Rules 2.3.1(a) (now MFDA Rule 2.3.1(b))1 and 2.1.1.
Allegation #4: Between January 2015 and June 2015, Movassaghi and/or Blythe created false notes that purported to record instructions received from client X which the Respondents had not in fact received, contrary to MFDA Rule 2.1.1.
Allegation #5: Between January 2014 and August 2016, Movassaghi failed to disclose potential conflicts of interest to the Member, contrary to MFDA Rules 2.1.4, 2.5.1, 1.1.2, and 2.1.1, and the policies and procedures of the Member.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on May 28, 2019 at 10:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact [email protected] to obtain particulars.
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 Respondents carried on business in the Vancouver, British Columbia area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 81,000 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.
1 On January 19, 2017, MFDA Rule 2.3.1 was amended. The prohibition on discretionary trading was moved from MFDA Rule 2.3.1(a) to MFDA Rule 2.3.1(b).
SOURCE Mutual Fund Dealers Association of Canada