MFDA Hearing Panel approves three settlement agreements
TORONTO, April 28, 2017 /CNW/ - On April 27, 2017, a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three (3) proceedings, the particulars of which are:
Annaji Kumar
A settlement hearing in the matter of Annaji Kumar ("Kumar") was held on April 27, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Kumar, as a consequence of which the following sanctions were imposed:
- a prohibition from conducting securities related business in the employ of or associated with a Member of the MFDA for a period of 6 months;
- costs in the amount of $1,500, the terms of which are as follows:
- $900 payable upon entering into the Settlement Agreement
- $600 on July 27, 2017;
- Successfully complete the Branch Managers Course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada prior to being re-designated as a branch manager;
- Shall in future comply with MFDA Rules 2.1.1 and 2.5.5(f).
In the Settlement Agreement, Kumar admitted that:
| a) |
on or about June 19, 2015, he falsified a client signature on an account form, contrary to MFDA Rule 2.1.1; |
| b) |
between 2004 and June 2015, he falsified and used to process transactions, 2 account forms in respect of 2 clients, by altering information on the account forms without obtaining client initials authorizing the alterations, contrary to MFDA Rule 2.1.1; |
| c) |
Between 2004 and June 2015, he obtained, possessed, and used to process transactions, 2 pre-signed account forms in respect of 2 clients, contrary to MFDA Rule 2.1.1; and |
| d) |
Between October 2009 and June 2015, acting in his capacity as branch manager, he reviewed and approved the use of an account form containing a falsified client signature, a falsified account form, and a pre-signed account form, contrary to MFDA Rules 2.5.5(f) (prior to September 2013, his conduct violated MFDA Rule 2.5.5(d)) and 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, Kumar carried on business in the Burlington, Ontario area.
Michael Nisbet
A settlement hearing in the matter of Michael Charles Nisbet ("Nisbet") was held on April 27, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Nisbet, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $6,500;
- costs in the amount of $2,500;
- shall be prohibited from acting in the capacity of a branch manager for a period of 6 months; and
- shall in future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Nisbet admitted that:
| a) |
between June 2011 and February 2015, he obtained, possessed, and used to process transactions, 3 pre-signed account forms, contrary to MFDA Rule 2.1.1.; and |
| b) |
between June 2011 and March 13, 2014, he did not review the information on 3 account forms with a client in respect of 3 transactions requested by the client, and then signed the account forms in his capacity as Approved Person, falsely attesting that he had reviewed the information on the account forms with the client, 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, Nisbet carried on business in the Sarnia, Ontario area.
Phillip Barker
A settlement hearing in the matter of Phillip Wayne Barker ("Barker") was held on April 27, 2017 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and Barker, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $8,500;
- costs in the amount of $2,500; and
- shall in future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Barker admitted that between November 2012 and July 2015, he obtained, possessed and used to process transactions, 31 pre-signed account forms in respect of 12 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, Careless carried on business in the Toronto, 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 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
Charles Toth, Director, Litigation, 416-943-4619, [email protected]
Share this article