TORONTO, Aug. 13, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Saifur Sarker (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 January and June 2008, the Respondent prepared and submitted loan applications and New Account Application Forms for client TO and client VO which the Respondent knew or ought to have known contained false, incorrect or misleading 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 January and June 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 recommendation that he made to client TO, thereby failing to ensure that the leveraged investment recommendations were suitable for client TO and in keeping with client TO's investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
Allegation #3: Between January and June 2008, the Respondent failed to ensure that the leveraged investment recommendation he made to client TO was suitable for the client and in keeping with the client's investment objectives, having regard to:
|a)||the client's relevant "Know-Your-Client" information and financial circumstances, including but not limited to the client's 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 Central Regional Council on October 22, 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 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 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