TORONTO, April 26, 2012 /CNW/ - A disciplinary hearing in the matter of Bill Hsueh (the "Respondent") was held today in Toronto, Ontario before a three-person Hearing Panel of the MFDA's Central Regional Council.
At the commencement of the hearing, the parties filed an Agreed Statement of Facts in which the Respondent admitted that he engaged in the following misconduct:
- Between May 5, 2008 and September 15, 2008, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member, by recommending and facilitating the transfer of mutual funds from client GL's account to accounts at an online discount broker opened in the name of GL and then trading equity securities held in the online accounts for client GL, contrary to MFDA Rules 1.1.1(a) and 2.1.1;
- Between May 2008 and September 2008, the Respondent engaged in conduct unbecoming an Approved Person by failing to inform GL about the status of her investments in the online accounts in an honest and accurate manner and by failing to respond sufficiently or at all to specific queries by GL concerning the status of her investments in the online accounts, contrary to MFDA Rule 2.1.1(c); and
- Between September 12, 2008 and December 9, 2009, the Respondent failed to handle complaints received from client GL concerning the status of client GL's investments in the online accounts by failing to inform the Member of the complaints and by attempting to settle the complaints directly with client GL without the Member's knowledge and involvement, contrary to:
a. MFDA Policy No. 3, MFDA Policy No. 6 and MFDA Rules 2.11 and 2.1.1; and
b. the Member's policies and procedures, thereby interfering with the ability of the Member to supervise the Respondent and comply with its obligations under MFDA Rule 2.11, contrary to MFDA Rules 1.1.2 and 2.5.1.
The Hearing Panel made the following orders at the conclusion of the hearing and advised that it will issue written reasons for its decision in due course:
- a permanent prohibition on the authority of the Respondent to conduct securities related business while in the employ of or associated with any Member of the MFDA; and
- costs in the amount of $2,500.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 123 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
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