TORONTO, Nov. 14, 2012 /CNW/ - A disciplinary hearing in the matter of Cheng Han Lee (the "Respondent") was held today in Vancouver, British Columbia before a three-person Hearing Panel of the MFDA's Pacific Regional Council. The Hearing Panel found that the allegations set out in the Notice of Hearing dated July 20, 2012 had been established:
Allegation #1: Between April 8, 2010 and April 14, 2010, the Respondent failed to deal fairly, honestly and in good faith with client SW by processing redemptions in client SW's accounts and then re-investing the redemption proceeds in a manner which required client SW to unnecessarily incur $4,513 in deferred sales charges and allowed the Respondent to earn $2,528 in sales commissions, contrary to the Member's short-term reinvestment policy and MFDA Rule 2.1.1.
Allegation #2: Commencing April 7, 2011, the Respondent has failed or refused to attend an interview requested by the MFDA during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.
The Hearing Panel imposed the following sanctions and costs 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 MFDA Member;
- a fine of $55,000; and
- costs of $5,000.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 119 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
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