TORONTO, Oct. 30, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Donato Gragasin (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:
Allegation #1: Between October 2006 and July 2008, the Respondent prepared and submitted new account application forms and investment loan applications for 10 clients which the Respondent knew or ought to have known contained false, misleading or incorrect information, thereby failing to observe high standards of ethics and conduct in the transaction of business and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
Allegation #2: Between October 2006 and July 2008, the Respondent misrepresented, failed to fully and adequately explain, or omitted to explain, the risks, benefits, material assumptions, features and costs of a leveraged investment strategy that he recommended to 10 clients, thereby failing to ensure that the leveraged investment recommendations were suitable for the clients and in keeping with the clients' investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between October 2006 and July 2008, the Respondent failed to ensure that the leveraged investment recommendations he made to 10 clients were suitable for the clients and in keeping with the clients' investment objectives, having regard to:
|a)||the clients' relevant "Know-Your-Client" information and financial circumstances, including but not limited to the clients' ability to afford the costs associated with the investment loans and withstand investment losses; and|
|b)||the Member's requirements regarding the use of leveraging, as set out in the Member's policies and procedures; contrary to MFDA Rules 2.2.1 and 2.1.1.|
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Prairie Regional Council on November 29, 2013 at 10:00 a.m. (Mountain) in the MFDA hearing room located at 800 - 6th Avenue S.W., Suite 850, Calgary, Alberta. The purpose of the appearance is to set a date for 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. The hearing of this matter on its merits will take place in Winnipeg, Manitoba at a time and venue to be announced.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 115 Members and their approximately 80,000 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