MFDA Hearing Panel approves settlement agreement with Hammond Lieu and issues Decision and Reasons
TORONTO, Nov. 29, 2018 /CNW/ - A settlement hearing in the matter of Hammond Lieu ("Respondent") was held on May 16, 2018 in Toronto, Ontario before a Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel has approved the Settlement Agreement dated May 10, 2018 ("Settlement Agreement") between Staff of the MFDA and the Respondent, and has issued its Decision and Reasons dated November 27, 2018 ("Decision and Reasons").
In its Decision and Reasons, the Hearing Panel announced the sanction imposed on the Respondent. In particular, the Respondent is permanently prohibited from acting as a mutual fund salesperson.
In the Settlement Agreement, the Respondent admitted that between at least October 21, 2009 and August 21, 2014, he:
a) |
falsified, fabricated or altered clients' Know-Your-Client information on account forms submitted to the Member, and information on loan applications and client documents submitted to lenders, in order to facilitate and obtain investment loans to purchase mutual funds for clients which loans the clients did not otherwise qualify for, thereby failing to observe the high standards of ethics and conduct in the transaction of business, and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1; |
b) |
failed to ensure that at least four investment loans recommended to clients were suitable for the clients and in keeping with the clients' investment objectives, having regard to the clients' relevant Know-Your-Client information and financial circumstances, contrary to the Member's policies and procedures, and MFDA Rules 2.2.1 and 2.1.1; and |
c) |
engaged in conduct unbecoming an Approved Person by providing false and misleading responses to the Member during the course of the Member's investigation into his conduct, contrary to MFDA Rule 2.1.1. |
Copies of the Decision and Reasons and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent conducted business in in Mississauga, Ontario.
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 82,000 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
Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]
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