TORONTO, April 24, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Punch Bun Chiu Lui (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 4, 2005 and March 2, 2010, the Respondent engaged in personal financial dealings with clients GC and HW in relation to amounts ranging from $170,000 to $118,000 that clients GC and HW had loaned to a company in which the Respondent had an interest and that the Respondent had personally guaranteed to repay, thereby giving rise to a conflict of interest between his interests and those of the clients which the Respondent did not ensure was resolved by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between January 2007 and March 2, 2010, the Respondent personally guaranteed to repay, and then failed to repay or otherwise account for $118,000 (as well as interest payments owing on that amount) that the Respondent had arranged for clients GC and HW to lend to a company in which the Respondent had an interest, thereby failing to deal fairly, honestly and in good faith with clients GC and HW, contrary to MFDA Rule 2.1.1.
Allegation #3: Between August 4, 2005 and February 2006, the Respondent had and continued in another gainful occupation that was not approved by the Member in respect of his involvement in and activities on behalf of two companies in which he had an interest, contrary to MFDA Rules 1.2.1(d) 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 May 24, 2012 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 123 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
For further information:
416-943-4672 or [email protected]