TORONTO, Nov. 6, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Richard Bangyay (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: In 2008, the Respondent engaged in personal financial dealings with client AA by soliciting and accepting from her $100,000 as a loan to invest in the Respondent's company, which the Respondent has failed to repay or otherwise account for, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between 2006 and May 30, 2008, the Respondent had and continued in other gainful occupations that were not disclosed to and approved by the Member by:
|(a)|| establishing and raising capital for a company he owned and operated that purportedly provided investment
management and other services; and
|(b)|| facilitating contributions in the total amount of $19,500 from client AA in a charitable investment scheme;
contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation #3: Between 2006 and May 30, 2008, the Respondent failed to comply with the Member's policies and procedures with respect to conflicts of interest with clients and engaging in undisclosed business activities in relation to the conduct described in Allegations #1 and #2, contrary to MFDA Rules 1.1.2 and 2.5.1, and MFDA Rule 2.1.1.
Allegation #4: Commencing October 21, 2011, the Respondent failed or refused to provide documents and information requested by MFDA Staff during the course of an investigation, which information he undertook and agreed to provide during an interview with MFDA Staff, contrary to s. 22.1 of MFDA By-law No. 1.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on December 17, 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 119 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
For further information:
416-943-4672 or [email protected]