TORONTO, June 6, 2019 /CNW/ - A settlement hearing in the matter of Pravinchandra Shah ("Respondent") was held today 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 April 24, 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 of or associated with a Member of the MFDA for a period of two months;
- a fine in the amount of $10,000, payable in installments as follows:
- $2,500 upon acceptance of the Settlement Agreement;
- $1,250 on or before July 31, 2019;
- $1,250 on or before August 30, 2019;
- $1,250 on or before September 30, 2019;
- $1,250 on or before October 31, 2019;
- $1,250 on or before November 29, 2019;
- $1,250 on or before December 31, 2019;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rules 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
a) between March 2010 and May 2016, he altered, and used to process transactions, 20 account forms in respect of 22 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and
b) between July 2004 and July 2016, he obtained, possessed, and in some instances, used to process transactions, 12 pre-signed account forms in respect of 8 clients, contrary to MFDA Rule 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 Scarborough, Ontario 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]