MFDA announces disciplinary proceeding in respect of Israel (Steve) Notis

MFDA announces disciplinary proceeding in respect of Israel (Steve) Notis

Canada NewsWire

TORONTO, Sept. 13, 2019 /CNW/ – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Israel (Steve) Notis (“Respondent”). In its Notice of Hearing dated August 26, 2019 (“Notice of Hearing”), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:

Allegation #1: Between November 2016 and March 2017, the Respondent engaged in personal financial dealings with a client of the Member by obtaining funds from the client that he pooled with his own funds to purchase an investment property, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, and 1.1.2 and 2.5.1.

Allegation #2: Between June 2015 and March 2017, the Respondent had and continued in outside activities that were not disclosed to and approved by the Member, including:

a) 

engaging in the purchase and resale of an investment property;

b) 

serving on the board of directors of a gold exploration corporation; and

c) 

serving as a representative for a foreign corporation to facilitate its collection of debts, contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(c) (now 1.3.2)[1], 2.1.1, and 2.5.1 and 1.1.2.

 

Allegation #3: Between at least 2014 and 2017, the Respondent obtained, possessed and, in some instances, used to process transactions, 70 pre-signed account forms, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 1.1.2, and 2.5.1.

Allegation #4: Between July 2014 and March 2017, the Respondent falsely indicated on the Member’s Annual Consultant Certificate that he: (i) did not possess and use pre-signed forms; (ii) was not engaged in any outside activities; and (iii) had reviewed and was compliant with the Member’s policies and procedures, contrary to MFDA Rule 2.1.1.

Allegation #5: Between May 2017 and June 2017, the Respondent misled the Member during the course of an investigation into his conduct, contrary to MFDA Rule 2.1.1.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on October 8, 2019 at 9:30 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact hearings@mfda.ca to obtain particulars.

A copy of the Notice of Hearing is available on the MFDA website at ww.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Toronto, 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 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.

____________________

1 On March 14, 2016, Rule 1.2.1(c) was revised and renumbered as Rule 1.3.2.

 

SOURCE Mutual Fund Dealers Association of Canada

View original content: http://www.newswire.ca/en/releases/archive/September2019/13/c0058.html

MFDA Hearing Panel approves settlement agreement with FundEX Investments Inc.

MFDA Hearing Panel approves settlement agreement with FundEX Investments Inc.

Canada NewsWire

TORONTO, Sept. 13, 2019 /CNW/ – A settlement hearing in the matter of FundEX Investments Inc. (“Respondent”) was held on September 12, 2019 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel approved the settlement agreement dated August 15, 2019 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:

  • a fine in the amount of $250,000;
  • costs in the amount of $50,000; and
  • in future shall comply with MFDA Rules 1.2.1, 2.1.1, 2.2.1, 2.5, 2.5.1, and 2.11, and MFDA Policy No. 3 and No. 5.

In the Settlement Agreement, the Respondent admitted that:

a) 

between June 2011 and April 2012, it failed to adequately supervise its Approved Person Christopher Singer’s recommendation to a client for the purchase of an exempt market product, which recommendation was unsuitable for the client having regard to concentration and the client’s Know-Your-Client information, including but not limited to the client’s investment knowledge and experience, and time horizon, contrary to MFDA Rules 2.2.1 and 2.1.1;

b)

between November 2007 and approximately February 2014, it did not have adequate procedures in place to monitor all of the holdings in its client accounts held at Canadian Western Trust, and did not identify the sale of unapproved products in the accounts of two clients, contrary to MFDA Rule 2.5.1;

c)

commencing in 2011, it failed to ensure that complaints from two clients regarding its Approved Persons Stuart Henschel and William Cormylo, were handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3;

d) 

between June 2013 and April 2017, it failed to conduct adequate supervisory investigations to review and resolve suitability and concentration of precious metal sector funds concerns it identified in client accounts serviced by four Approved Persons, contrary to MFDA Rules 2.2.1 and 2.5.1;

e) 

between March 28, 2016 and May 1, 2018, it failed to ensure that a complaint from a client regarding its Approved Person Ronald Schwartz was handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3; and

f) 

between August 2009 to November 2013, it maintained a branch review program that did not ensure that in all instances an on-site compliance review of all of its branches was conducted at least once every three years, in accordance with MFDA Policy No. 5 and MFDA Rule 2.5.1.

 

A copy of the Settlement Agreement 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 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

View original content: http://www.newswire.ca/en/releases/archive/September2019/13/c4278.html

MFDA issues Notice of Settlement Hearing in respect of Michael Bast

MFDA issues Notice of Settlement Hearing in respect of Michael Bast

Canada NewsWire

TORONTO, Sept. 13, 2019 /CNW/ – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing dated September 10, 2019 regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.

The settlement agreement will be between Staff of the MFDA and Michael Jonathan Bast (“Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws.

The proposed settlement agreement concerns allegations that the Respondent:

a)  

between September 2014 and September 2017, obtained, possessed and, in some instances, used to process transactions, 20 pre-signed account forms in respect of seven clients, contrary to MFDA Rule 2.1.1; and

b)   

between January 2015 and July 2016, acting in his capacity as branch manager, reviewed and approved the use of 19 pre-signed account forms, contrary to MFDA Rule 2.1.1 and 2.5.5(f).

 

The settlement hearing will take place on September 27, 2019, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, 121 King Street West, Suite 1000, Toronto, Ontario.

MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondent conducted business in the Waterloo, 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 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

View original content: http://www.newswire.ca/en/releases/archive/September2019/13/c8314.html