TORONTO, Nov. 23, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Leo Thach Quang Lam ("Respondent") by Notice of Hearing dated May 7, 2018 ("Notice of Hearing").
A disciplinary hearing in this proceeding was held on November 22, 2018 in Calgary, Alberta before a three-member Hearing Panel of the MFDA's Prairie Regional Council. After receiving evidence and hearing submissions from Staff of the MFDA, the Hearing Panel found that the three allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following finding of misconduct:
Allegation #1: Commencing no later than July 2013, the Respondent misappropriated or failed to account for monies invested by client AL, thereby failing to deal fairly, honestly and in good faith with his client, failing to observe high standards of ethics and conduct in the transaction of business, or engaging in conduct that is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1.
Allegation #2: Commencing no later than July 2013, the Respondent processed trades in client AL's investment accounts without the client's knowledge or authorization, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1(a) and 2.1.1.
Allegation #3: Commencing in July 2016, the Respondent has failed to cooperate with the MFDA's investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
After hearing submissions from Staff of the MFDA as to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $100,000, the particulars of which are:
- $50,000 in respect of the violation of MFDA Rules 2.3.1(a) and 2.1.1;
- $50,000 for the Respondent's failure to cooperate; and
- costs in the amount 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 Members and their approximately 82,000 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