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TORONTO, ON, Feb. 2, 2021 /CNW/ - A settlement hearing in the matter of My Phuong "Vicky" Luong Dao ("Respondent") was held by electronic hearing today before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel accepted the settlement agreement dated December 8, 2020 ("Settlement Agreement"), between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
a fine in the amount of $50,000; and
costs in the amount of $10,000.
In the Settlement Agreement, the Respondent admitted that:
commencing in March 2010, she has been engaged in an outside business activity that was not disclosed to or approved by the Member, contrary to the policies and procedures of the Member and MFDA Rule 1.2.1(d)1 (now Rule 1.3.2) and MFDA Rules 2.10, 2.5.1 and 1.1.2;
commencing in March 2010, she engaged in personal financial dealings with client MH by:
purchasing two condominium units (the "Condominium Units") with client MH and accepting payments from client MH to finance the costs of purchasing and maintaining the Condominium Units;
opening and maintaining a joint bank account with client MH to facilitate:
the receipt of deposits including payments from client MH towards the costs of the Condominium Units;
the deposit and accounting for rental income generated by the Condominium Units; and
the payment of expenses (including mortgage payments) associated with the purchase and maintenance of the Condominium Units; and
accepting three cheques from client MH totaling $95,000 which were deposited into the Respondent's personal bank account;
between November 2012 and November 2016, she submitted five Annual Representative Compliance Certification questionnaires to the Member that contained false or misleading responses, thereby interfering with the ability of the Member to supervise the Respondent's activities, failing to observe high standards of ethics and conduct in the transaction of business, and engaging in conduct that is unbecoming and detrimental to the public interest, contrary to MFDA Rules 2.1.1, 1.1.2 and 2.5.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business out of the Richmond Hill, 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 Effective December 3, 2010, Rule 1.2.1(d) concerning dual occupations was renumbered as 1.2.1(c). Effective March 17, 2016, Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3. Approved Persons have always been required to ensure that the Member is aware of and approves of any Approved Person's engagement in outside business activities.
SOURCE Mutual Fund Dealers Association of Canada
View original content: http://www.newswire.ca/en/releases/archive/February2021/02/c2168.html