TORONTO, Feb. 6, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Saveth Law ("Respondent") by Notice of Hearing dated August 15, 2018.
A disciplinary hearing in this proceeding was held yesterday 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 two allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following finding of misconduct:
Allegation #1: In September 2016, the Respondent signed the initials of a client on an account form in order to change the client's Know-Your-Client information without the client's knowledge or approval, contrary to MFDA Rule 2.1.1.
Allegation #2: Commencing in May 2017, the Respondent failed to cooperate with an investigation conducted by MFDA Staff, 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 $50,000; 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 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