TORONTO, Oct. 7, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Rupinder K. Bhathal (the "Respondent") by Notice of Hearing (the "Notice of Hearing) dated June 30, 2016.
A disciplinary hearing in this matter was held on October 6, 2016 in Vancouver, British Columbia before a three-member Hearing Panel of the MFDA's Pacific Regional Council. After hearing submissions and receiving evidence from Staff of the MFDA, the Hearing Panel found that the following allegations concerning the Respondent had been established:
Allegation #1: Between December 2012 and January 2014, the Respondent processed unauthorized redemptions in the accounts of client TP and client GG, and misappropriated the proceeds of those redemptions, contrary to MFDA Rules 2.1.1 and 2.3.1(a).
Allegation #2: Between November 10, 2009 and January 20, 2014, the Respondent falsified client GG's signature on an at least three account forms including one trade ticket that was used to process a transaction, and used two blank pre-signed account forms to process redemptions in client GG's account, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing June 3, 2015, the Respondent failed to comply with requests from Staff of the MFDA ("Staff") to attend an interview to give information relevant to the subject matter of Staff's investigation concerning her conduct as an Approved Person, contrary to section 22.1 of MFDA By-law No. 1.
Allegation #4: On February 11, 2014, the Respondent interfered with the Member's supervisory investigation into her conduct by providing false and misleading information in response to the Members' inquiries, contrary to MFDA Rules 2.5.1, 1.1.2, 2.1.4, and 2.1.1.
Allegation #5: Between about February 2013 and July 2013, the Respondent made unauthorized withdrawals from insurance client accounts to pay the clients' own insurance premiums and the insurance premiums of others, falsified insurance client signatures, and processed insurance applications without the knowledge or consent of the clients, and thereby failed to be of such character and business repute as is consistent with the standards prescribed by MFDA Rule 2.1.1.
The Hearing Panel imposed the following sanctions on the Respondent 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 Member of the MFDA;
- a global fine in the amount of $155,000; and
- costs in the amount of $10,000.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the Abbotsford, British Columbia 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 83,000 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