TORONTO, March 28, 2019 /CNW/ - A settlement hearing in the matter of Shah Financial Planning Inc. ("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 December 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 fine in the amount of $20,000;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rules 2.2.1, 2.5, and 2.10 and MFDA Policy No. 2.
In the Settlement Agreement, the Respondent admitted that between at least January 2013 and August 2017, it failed to establish, implement and maintain adequate procedures to supervise and ensure the suitability of leveraged investment recommendations made by its Approved Persons to clients, contrary to MFDA Rules 2.2.1, 2.5, and 2.10 and MFDA Policy No. 2.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondent had its head office and only branch located in Scarborough, 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 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]