TORONTO, Aug. 22, 2018 /CNW/ - A settlement hearing in the matter of Paulita Bihis ("Respondent") was held on August 21, 2018 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 August 20, 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 acting as a branch manager or acting in any other MFDA related supervisory capacity while in the employ of or associated with any MFDA Member for a period of one year;
- a fine in the amount of $5,000;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rules 1.1.2, 2.5.1, 2.5.5(f), and 2.1.1 and section 3 of MFDA Policy No. 3.
In the Settlement Agreement, the Respondent admitted that from July 30, 2015 to October 22, 2015, in her capacity as Branch Manager, she failed to identify regulatory concerns and take adequate supervisory action in response to information which indicated that an Approved Person for whom she had supervisory oversight, may have engaged in unauthorized discretionary trading in the accounts of a client, contrary to MFDA Rules 1.1.2, 2.5.1, 2.5.5(f), and 2.1.1 and section 3 of MFDA Policy No. 3.
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 83,000 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]