TORONTO, June 12, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of PDQ Financial Services Inc. ("PDQ") and Cesidio ("Sid") Negri ("Negri"). 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 August 2007 and August 2012, while PDQ was designated in early warning, PDQ and Negri frequently contravened the early warning requirements set out in MFDA Rule 3.4.2 by:|
|a)||making payments without the prior written consent of the MFDA:|
|i.||by way of loan, advance, bonus, dividend, repayment of capital or other distribution of assets from PDQ to directors, officers and shareholders of PDQ;|
|ii.||from PDQ that had the effect of increasing PDQ's non-allowable assets; and|
|iii.||from PDQ that had the effect of reducing PDQ's capital;|
|contrary to MFDA Rules 3.4.2(b)(iv) and 3.4.2(c) and MFDA Rule 2.1.1; and|
|b)||failing to provide timely responses to requests by MFDA Staff for reports and information required by MFDA Staff to assess and monitor the financial conditions and operations of PDQ, contrary to MFDA Rules 3.4.2(b)(vii) and 2.1.1.|
|Allegation #2: Between March 2011 and July 2012, Negri made withdrawals from PDQ to pay personal expenses in excess of the amounts approved by MFDA Staff, contrary to MFDA Rules 3.4.2(b)(iv)(C) and 3.4.2(c) and MFDA Rule 2.1.1.|
|Allegation #3: Between 2010 and 2012, while in the course of attempting to sell investments in PDQ, PDQ and Negri circulated a sales communication to prospective investors in PDQ that inaccurately stated or implied that the MFDA and other regulators had endorsed PDQ's business model or plan, products, suitability process or any other feature of its operations, products or services, contrary to MFDA Rules 2.7.2 and 2.1.1.|
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on August 21, 2013 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the first 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 MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 116 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