TORONTO, Nov. 7, 2019 /CNW/ - A settlement hearing in the matter of Jesse Vu ("Respondent") was held today in Calgary, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated November 6, 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 prohibition from conducting securities related business in any capacity while in the employ or associated with any Member of the MFDA for a period of one month;
- a fine in the amount of $1,000 ("Fine");
- costs in the amount of $2,500 ("Costs");
- payment of the Fine and Costs shall be made as follows:
- $1,000 (Costs) upon acceptance of the Settlement Agreement;
- $1,250 (Costs) on or before the last business day of the third month following the date of acceptance of the Settlement Agreement;
- $1,250 (Fine and Costs) on or before the last business day of the sixth month following the date of acceptance of the Settlement Agreement; and
- shall in the future comply with MFDA Rules 1.3, 2.1.1, and 2.4.2.
In the Settlement Agreement, the Respondent admitted that:
a) between about March 2016 and March 2017, she engaged in outside business activities which were not disclosed to or approved by the Member, contrary to the policies and procedures of the Member and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3) and 2.1.1; and
b) between about November 2016 and October 2017, she referred one client and three other individuals to a mortgage brokerage outside the Member, and received at least $1,085.95 outside the Member for doing so, thereby participating in a referral arrangement to which the Member was not a party and which did not otherwise comply with the policies and procedures of the Member and MFDA Rules 2.4.2(b) 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 conducted business in the Calgary, Alberta 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
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]