TORONTO, April 1, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Peter Anthony Varteresian ("Respondent"). In its Notice of Hearing dated February 19, 2019, 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 May 2016 and October 2016, the Respondent implemented a strategy for 13 clients to fund the purchase of new insurance policies for the clients from the proceeds of redemptions from the registered retirement savings accounts of the clients without obtaining authorization to process the redemptions or adequately explaining the costs associated with the redemptions, contrary to MFDA Rules 2.2.1, 2.4.4 and 2.1.1.
Allegation #2: In or about June 2015, the Respondent made an unsuitable investment recommendation to his 65 year old client, DS, when he recommended that she purchase mutual funds subject to deferred sales charges ("DSCs") when he knew or ought to have known that she would require access to some of the invested money prior to the expiry of the DSC schedule and he failed to adequately disclose to client DS that she might be required to pay DSCs upon the subsequent sale of those investments, contrary to MFDA Rules 2.2.1, 2.4.4 and 2.1.1.
Allegation #3: In or about July 2015, the Respondent failed to use due diligence to learn or update material changes to client GR's Know-Your-Client information, contrary to MFDA Rules 2.2.1, 2.2.4(b) and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on May 13, 2019 at 10:00 a.m. (Atlantic), 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 firstname.lastname@example.org to obtain particulars. The Hearing on the Merits will take place in Halifax, Nova Scotia.
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 Respondent carried on business from a branch located in Halifax, Nova Scotia.
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.
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, email@example.com