TORONTO, May 6 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") today announced that it has commenced disciplinary proceedings against Zenon Smiechowski (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 the MFDA:
Allegation No. 1: Between July 23, 2004 and October 27, 2006, the
Respondent engaged in personal financial dealings with client FP by
borrowing $25,000 from client FP, thereby giving rise to an actual or
potential conflict of interest between the Respondent and client FP which
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 2.1.4 and 2.1.1.
Allegation No. 2: Between July 23, 2004 and at least October 27, 2006,
the Respondent failed to disclose to the Member that he had engaged in
personal financial dealings with client FP, thereby failing to comply
with the Member's policies and procedures and interfering with the
ability of the Member to supervise the Respondent and comply with its
obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and
2.5.1, and MFDA Rule 2.1.1.
Allegation No. 3: Between October 13, 2007 and January 29, 2008, the
Respondent failed to disclose to the Member with which he was registered
that he was the defendant in a civil claim that had been commenced
against him by client FP in the British Columbia Supreme Court regarding
activities that occurred while he was an approved person at another
Member, contrary to:
(a) sections 4.1(c) and (e) of MFDA Policy No. 6 and
MFDA Rules 1.25(b) and 2.1.1;
(b) section 4.1 of National Instrument 33-109 - Registration
(c) the Member's policies and procedures, thereby interfering with
the ability of the Member to supervise the Respondent and comply
with its obligations under MFDA Rule 2.1.4, contrary to MFDA
Rules 1.1.2 and 2.5.1.
Allegation No. 4: Between March 13, 2008 and March 24, 2008, the
Respondent interfered with the ability of the Member with which he was
registered to conduct a reasonable supervisory investigation of, and
respond to, a complaint by failing to respond truthfully and completely
to inquiries from the Member and withholding relevant information
concerning the subject matter of the investigation from the Member,
contrary to MFDA Rules 1.1.2 and 2.11 and MFDA Rule 2.1.1.
Allegation No. 5: Between June 2005 and June 2009, the Respondent failed
to repay $25,000 in principal plus interest owing to former client FP
under the terms of a promissory note, thereby engaging in conduct
unbecoming an Approved Person and detrimental to the public interest,
contrary to MFDA Rule 2.1.1.
The first appearance in this matter will take place by teleconference on May 13, 2010 at 10:00 a.m. (Pacific) before a Hearing Panel of the MFDA's Pacific Regional Council in the hearing room located at the offices of the MFDA at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, or as soon thereafter as the appearance can be held.
The purpose of the first appearance is to schedule the date for the commencement of the hearing of this matter on its 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 140 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information: For further information: Shaun Devlin, Vice-President, Enforcement, (416) 943-4672 or email@example.com