TORONTO, Dec. 8, 2014 /CNW/ - A Settlement Hearing in the matter of Lachman Hassaram Balani (the "Respondent") was held today in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel accepted the Settlement Agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:
a) shall pay a fine in the amount of $10,000;
b) shall pay costs in the amount of $2,500;
c) the payment by the Respondent of the fine and costs in subparagraphs (a) and (b) above shall be made to and received by MFDA Staff in certified funds, of which timeline for each payment is outlined in the Settlement Agreement;
d) if the Respondent fails to make any of the payments as described in the Settlement Agreement, then:
i. any outstanding balance of fine and costs owed by the Respondent shall immediately become due and payable to the MFDA; and
ii. the Respondent shall immediately be suspended from conducting securities related business while in the employ of, or associated with, a Member of the MFDA, pursuant to section 24.3.13(c) until such time as the total amount of the outstanding fine and costs owed by the Respondent to the MFDA is paid to the MFDA; and
e) the Respondent shall in the future comply with MFDA Rules, By-law and Policy, including MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admits that, between March 2010 and February 2013, he obtained and maintained approximately 89 account and trade forms in 23 client accounts which were signed by clients when the forms were blank or only partially complete, and used the forms to process transactions in client accounts, contrary to MFDA Rule 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Brampton, Ontario area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 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]