TORONTO, Sept. 17, 2019 /CNW/ - A settlement hearing in the matter of Rakeshkumar Patel ("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 May 15, 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 years;
- a fine in the amount of $5,000, payable in installments as follows:
- $500 upon acceptance of the Settlement Agreement;
- $500 on or before October 31, 2019;
- $500 on or before November 29, 2019;
- $500 on or before December 31, 2019;
- $500 on or before January 31, 2020;
- $500 on or before February 28, 2020;
- $500 on or before March 31, 2020;
- $500 on or before April 30, 2020;
- $500 on or before May 29, 2020;
- $500 on or before June 30, 2020;
- costs in the amount of $2,500; and
- in future shall comply with MFDA Rules 2.1.1, 2.10, 2.2.1 and 1.1.2.
In the Settlement Agreement, the Respondent admitted that:
a) on February 27, 2015, he, without client VB's authorization, changed client VB's address on the Member's back office system from client VB's residential address to the branch address at which he conducted business, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 2.10 and 1.1.2.
b) on April 14, 2015, he, in response to a supervisory query from the Member's compliance staff regarding the suitability of a trade, changed client VB's investment objectives on a Know-Your-Client ("KYC") update form without client VB's knowledge or authorization, and falsified client VB's signature on the KYC update form, contrary to MFDA Rules 2.2.1 and 2.1.1.
c) on January 13, 2016, he misled the Member during the course of its supervisory investigation into his conduct, contrary to MFDA Rule 2.1.1.
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]