MFDA announces disciplinary proceeding in respect of Lloyd Snyder
TORONTO, Oct. 22, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Lloyd A. Snyder (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 2005 and 2007, the Respondent misrepresented, or failed to fully and adequately explain the risks, benefits, material assumptions, features and costs of the leveraged investment recommendations that he implemented in the accounts of at least 15 clients, thereby failing to ensure that the leveraged investment recommendations were suitable and appropriate for the clients and in keeping with their investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #2: Between 2005 and 2007, the Respondent failed to ensure that the leveraged investment recommendations that he implemented in the accounts of at least 15 clients were suitable and appropriate for the clients and in keeping with their investment objectives, having regard to the clients' relevant "Know-Your-Client" factors including, but not limited to, the clients' ability to afford the costs associated with the investment loans, their ability to withstand investment losses, and their risk tolerance, 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 Atlantic Regional Council on November 25, 2013 at 10:00 a.m. (Atlantic). The purpose of the first appearance is to schedule a date for the hearing of this matter on its merits and address any other procedural matters. The first appearance will be open to the public, except as may be required for the protection of confidential matters.
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.
SOURCE Mutual Fund Dealers Association of Canada