TORONTO, Jan. 6 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings
against M. Hershberg Capital Limited (the "Respondent").
MFDA staff alleges in its Notice of Hearing that the Respondent engaged
in the following conduct contrary to the By-laws, Rules or Policies of
Allegation #1: From July 2004 to October 2008, the Respondent failed to ensure that
trades in the accounts of clients were consistent with the clients'
documented Know-Your-Client ("KYC") information in that purchase
transactions of "medium/high" and "high" risk investments were made in
accounts of clients who had a risk tolerance of "medium" recorded on
their KYC forms, contrary to MFDA Rules 2.2.1 and 2.5.1.
Allegation #2: From July 2004 to May 2009, the Respondent engaged in discretionary
trading in that trades were executed in client accounts:
(a) pursuant to limited trading authorizations but absent evidence
of specific client authorization; and
(b) several days after receiving client authorization for trades,
contrary to MFDA Rules 2.3, 5.1(b), and 2.1.1.
Allegation #3: From July 2004 to May 2009, the Respondent engaged in unauthorized
trading in that trades were executed in client accounts based on
instructions from individuals other than the account holders or those
granted trading authority over the accounts, contrary to MFDA Rule
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Central Regional Council on
January 27, 2011 at 10:00 a.m. (Eastern) in the hearing room located at
121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the
first appearance is to schedule a date for the commencement of the
hearing on the merits and to address any other procedural matters and
will be open to the public, except as may be required for the
protection of confidential matters.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 136 Members and their approximately 75,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
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