TORONTO, July 12, 2012 /CNW/ - A disciplinary hearing in the matter of Punch Bun Chiu Lui (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 April 12, 2012 had been established:
|Allegation #1: Between August 4, 2005 and March 2, 2010, the Respondent engaged in personal financial dealings with clients GC and HW in relation to amounts ranging from $170,000 to $118,000 that clients GC and HW had loaned to a company in which the Respondent had an interest and that the Respondent had personally guaranteed to repay, thereby giving rise to a conflict of interest between his interests and those of the clients which the Respondent did not ensure was resolved 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.
|Allegation #2: Between January 2007 and March 2, 2010, the Respondent personally guaranteed to repay, and then failed to repay or otherwise account for $118,000 (as well as interest payments owing on that amount) that the Respondent had arranged for clients GC and HW to lend to a company in which the Respondent had an interest, thereby failing to deal fairly, honestly and in good faith with clients GC and HW, contrary to MFDA Rule 2.1.1.
|Allegation #3: Between August 4, 2005 and February 2006, the Respondent had and continued in another gainful occupation that was not approved by the Member in respect of his involvement in and activities on behalf of two companies in which he had an interest, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
The Hearing Panel made the following orders at the conclusion of the hearing and advised that it would 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.
For further information:
416-943-4672 or [email protected]