TORONTO, Sept. 15, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Lakhjit Singh Sarang (the "Respondent"). In its Notice of Hearing dated September 9, 2015, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between about September 2010 and July 2013, the Respondent engaged in personal financial dealings with a client when he borrowed $29,015 from the client, or arranged for the client to loan $29,015 to a third party, for investment in a non-arm's length corporation, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1.
Allegation #2: Between about June 2010 and April 2013, the Respondent had and continued in other gainful occupation which was not disclosed to and approved by the Member, when he was a shareholder and director of a corporation, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)), 1.1.2, 2.5.1, and 2.1.1.
Allegation #3: In October 2011, the Respondent misled the Member by falsely answering the Member's annual compliance certification with regards to personal financial dealings with a client and other gainful occupations outside the Member, thereby interfering with the Member's ability to supervise the Respondent and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on October 22, 2015 at 9:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will take place in the hearing room at the MFDA offices, located at 650 West Georgia Street, Suite 1220 Vancouver, British Columbia, 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 Vancouver, British Columbia 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 103 Members and their over 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