TORONTO, July 24, 2018 /CNW/ - A settlement hearing in the matter of Paul Moroz ("Respondent") took place yesterday in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated July 16, 2018 ("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 of or associated with a MFDA Member for a period of four months;
- a fine in the amount of $10,000, payable in accordance with the following payment schedule:
- $2,000 by October 24, 2018;
- $2,000 by December 24, 2018;
- $2,000 by February 25, 2019;
- $2,000 by April 24, 2019; and
- $2,000 by June 24, 2019,
- costs in the amount of $5,000.
In the Settlement Agreement, the Respondent admitted that:
a) between July 2008 and October 2013, he failed to ensure that the investment recommendations he made to clients A and B were suitable for them, contrary to the Member's policies and procedures, and MFDA Rules 2.2.1, 2.5.1, 1.2.2, and 2.1.1;
b) between November 24, 2010 and June 23, 2011, he obtained, and used to facilitate transactions, at least five blank pre-signed Know-Your-Client update forms in respect of accounts held by clients A and B, contrary to MFDA Rule 2.1.1; and
c) between January 2011 and June 2011, he failed to update material changes to client information on Know-Your-Client update forms when clients A and B informed the Respondent of the changes, contrary to MFDA Rules 2.2.4 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 St. Catharines, 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
For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]