TORONTO, Sept. 26, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Raymond John Zamrykut ("Respondent") by Notice of Hearing dated April 22, 2019.
A disciplinary hearing in this matter was held September 24, 2019 in Winnipeg, Manitoba before a three-member Hearing Panel of the MFDA's Prairie Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated July 19, 2019 ("Agreed Statement of Facts") in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.
In particular, the Respondent admitted that:
a) in May 2014, he borrowed a total of $3,100 from two clients, thereby engaging in conduct giving rise to a conflict or potential conflict of interest which he failed to disclose to the Member, or failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member's policies and procedures of the Member and MFDA Rules 1.1.2, 2.1.4, 2.1.1, and 2.5.1; and
b) between October 2016 and January 2018, he failed to report to the Member an outstanding garnishment order against him, contrary to the policies and procedures of the Member, subsection 4.1(h) of MFDA Policy No. 6, and MFDA Rules 1.1.2, 2.1.1 and 2.5.1.
Following submissions from the parties, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of 30 months;
- a fine in the amount of $5,000 ("Fine");
- costs in the amount of $2,500 ("Costs");
- payment of the Fine and Costs shall be made to and received by the MFDA in 24 monthly installments of $312.50 on or before the final business day of each month commencing in October 2019 and ending in September 2021; and
- failure to make any of the installment payments of the Fine and Costs will result in the entire outstanding amount becoming immediately due and payable to the MFDA.
- shall in the future comply with MFDA Rules 1.1.2, 2.1.4, 2.1.1, and 2.5.1
Copies of the Notice of Hearing and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Winnipeg, Manitoba area.
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 81,000 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