TORONTO, April 12, 2019 /CNW/ - A settlement hearing in the matter of David Edward Hucul ("Respondent") was held yesterday in Vancouver, British Columbia before a Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated March 11, 2019 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $10,000;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rules 2.1.0, 1.1.2, 2.1.1.
In the Settlement Agreement, the Respondent admitted that between December 19, 2016 and January 9, 2017, he processed a redemption of $500,000 in a client's account based upon email instructions received from a third party who had obtained unlawful access to a client's email account and subsequently misappropriated the proceeds of the redemption, contrary to the policies and procedures of the Member and MFDA Rules 2.10, 1.1.2 and 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 Coquitlam, British Columbia area.
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