TORONTO, Sept. 9, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced at disciplinary proceeding in respect of Lisa Hua Deng Huang (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated November 23, 2015.
A disciplinary hearing in this matter took place on September 8, 2016 in Toronto, Ontario, before a three-person Hearing Panel of the MFDA's Central Regional Council. After hearing submissions and receiving evidence from Staff of the MFDA with respect to misconduct, the Hearing Panel found that the following allegations concerning the Respondent had been established:
Allegation # 1: Between November 8, 2012 and May 1, 2013, the Respondent borrowed $455,000 from client EA, thereby engaging in personal financial dealings with a client which gave rise to a conflict or potential conflict of interest between the Respondent and the client that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.1 and 2.1.4.
Allegation # 2: Commencing on January 27, 2015, the Respondent failed to cooperate with Staff's investigation into her conduct, contrary to section 22.1 of MFDA By-law No. 1.
After hearing submissions from Staff of the MFDA with respect to penalty, the Hearing Panel reserved its decision and advised that it will issue its decision and written reasons in due course.
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
For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]