TORONTO, June 25, 2018 /CNW/ - A settlement hearing in the matter of Vasant Avhad ("Respondent") was held today in Edmonton, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated June 20, 2018 ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed:
- a prohibition for four months from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA;
- shall pay costs in the amount of $2,500;
- payment of the costs shall be made to and received by MFDA Staff in certified funds as follows:
- $500 upon acceptance of the Settlement Agreement;
- $500 on or before the last business day of the 2nd month following the date of the acceptance of the Settlement Agreement;
- $500 on or before the last business day of the 3rd month following the date of the acceptance of the Settlement Agreement;
- $500 on or before the last business day of the 4th month following the date of the acceptance of the Settlement Agreement;
- $500 on or before the last business day of the 5th month following the date of the acceptance of the Settlement Agreement
- shall in the future comply with MFDA Rules 2.2.1 and 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
between December 30, 2015 and January 4, 2016, he opened two accounts for a client, recorded the client's Know-Your-Client information, and processed two transactions in the client's accounts without having met or communicated with the client, thereby failing to use due diligence to learn the essential facts relative to a client and to each order or account accepted, contrary to MFDA Rules 2.2.1 and 2.1.1; and
on December 30, 2015, he created a note on the Member's back office system which indicated that he met with a client to open two accounts at the Member when he had not done so, 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 Fort McMurray, Alberta 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 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