TORONTO, Dec. 20, 2018 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Rajbir Singh ("Respondent") by Notice of Hearing dated April 12, 2018.
A disciplinary hearing in this matter was held yesterday in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated December 19, 2018 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:
- between October 27, 2015 and December 14, 2015, he loaned client MS least $130,000 to purchase mutual funds in order to help him qualify for a bonus or other compensation through a branch incentive program, which conduct gave rise to a conflict or potential conflict of interest by putting his interests ahead of any interest of client MS, and which he failed to address by the exercise of responsible business judgment influenced only by the best interests of client MS, contrary to MFDA Rules 3.2.1, 2.1.4 and 2.1.1; and
- on November 3, 2015, he misled National Bank Investment Inc. by falsely informing National as to the source of client MS's funds, thereby interfering with the ability of National to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rule 2.1.1.
After hearing submissions from the parties regarding penalty, the Hearing Panel reserved its decision and advised that it will issue its decision and written reasons in due course.
Copies of the Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent carried on business in the Richmond Hill, Ontario 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 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
For further information: Charles Toth, Director, Litigation, 416-943-4619, [email protected]