TORONTO, Jan. 14, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Mohamed Tahir (the "Respondent"). In its Notice of Hearing dated December 19, 2014, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Commencing March 31, 2014, the Respondent failed to cooperate with an investigation concerning client complaints that he may have engaged in unauthorized activity in client accounts and may have misappropriated or failed to account for client monies, by failing to provide a written statement and produce documents and records requested by MFDA Staff during the course of an investigation, contrary to section 22.1 of MFDA By-Law No. 1 and MFDA Rule 2.1.1.
Allegation #2: Between June 2003 and December 2011, the Respondent prepared and submitted new account application forms and investment loan applications for client AP and client ML which the Respondent knew or ought to have known contained false, misleading or incorrect information, thereby failing to observe the 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 #3: Between June 2003 and December 2011, 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 to at least client AP and client ML, thereby failing to ensure that the leveraged investment recommendations were suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #4: Between June 2003 and December 2011, the Respondent failed to ensure that the leveraged investment recommendations he made to client AP and client ML were suitable for the clients and in keeping with the clients' investment objectives, having regard to:
(a) the clients' relevant "Know Your Client" information and personal and financial circumstances, including but not limited to the clients' ability to afford the costs associated with the investment loans and withstand investment losses; and
(b) the Member's requirements regarding the use of leveraging, as set out in the Member's policies and procedures;
contrary to MFDA Rules 2.2.1 and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on January 26, 2015 at 10:00 a.m. (Eastern), 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 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 107 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
For further information: Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]