TORONTO, July 12, 2012 /CNW/ - A disciplinary hearing in the matter of Jose Luis Bautista (the "Respondent") was held today in Toronto, Ontario before a three-person Hearing Panel of the MFDA's Central Regional Council. The Hearing Panel found that the allegations set out in the Notice of Hearing dated January 23, 2012 had been established:
Allegation #1: Between October 30, 2006 and December 17, 2009, the Respondent had and continued in at least four gainful occupations that were not disclosed to or approved by the Member, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation #2: Between October 30, 2006 and December 17, 2009, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member by selling or facilitating the sale of investments in the total amount of approximately $500,000 in a company outside the accounts and facilities of the Member, contrary to MFDA Rules 1.1.1(a) and 2.1.1.
Allegation #3: Between October 30, 2006 to December 17, 2009, the Respondent engaged in personal financial dealings with clients, thereby creating a conflict or potential conflict of interest between the Respondent's interests and the clients' interests which the Respondent did not ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.
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 in any capacity while in the employ of, or associated with, any MFDA Member;
- a fine of $150,000; and
- costs of $7,500.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 121 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
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