TORONTO, May 7, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Satya Prakash Agarwal (the "Respondent"). In its Notice of Hearing dated March 20, 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: From April 12, 2010 to March 13, 2013, the Respondent solicited and accepted at least $50,000 from clients HD and SD to be invested on their behalf outside the Member in a real estate investment in which he and his wife purportedly had a direct or indirect interest and which was not disclosed to and approved by the Member, contrary to MFDA Rules 1.1.1(a), 1.2.1(c), 2.1.4 and 2.1.1.
Allegation #2: Between April 2012 and March 15, 2013, the Respondent attempted to settle and subsequently settled a complaint made by clients HD and SD to the Member without the knowledge or involvement of the Member by repaying $50,000 to clients HD and SD and requesting that they withdraw their complaint, contrary to MFDA Policy No. 3, MFDA Policy No. 6 and MFDA Rule 2.1.1; and
Allegation #3: Commencing February 3, 2014, the Respondent has failed to answer questions or produce for inspection copies of documents and records requested by the MFDA during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on May 22, 2015 at 10:00 a.m. (Eastern), 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 be open to the public, except as may be required for the protection of confidential matters.
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 conducted business in the Mississauga and Brampton, Ontario areas.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 104 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: Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]