TORONTO , June 26, 2020 /CNW/ - A settlement hearing in the matter of Frank Siu-Cheong Pa ("Respondent") was held on June 25, 2020 in Toronto, Ontario by electronic hearing 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 June 22, 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 suspension from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA for a period of five months;
- a fine in the amount of $25,000 , payable in instalments as follows:
- costs in the amount of $5,000 ; and
- shall in future comply with MFDA Rules 1.3.2, 1.1.1(a) and 2.1.1 and the policies and procedures of any Member with whom he is registered in the future.
In the Settlement Agreement, the Respondent admitted that:
between 2009 and March 2018, he engaged in outside business activities, including serving as President, Chief Executive Officer and director of a mortgage investment corporation without prior written approval from the Member, contrary to the policies and procedures of the Member and MFDA Rules 1.2.1(d) [now Rule 1.3.2]1 and Rule 1.1.2 as it relates to MFDA Rules 2.10 and 2.5.1;
between September 2014 and March 2018, he engaged in securities related business that was not carried on for the account of the Member or processed through the facilities of the Member by selling, recommending, referring or otherwise facilitating investments in preferred shares of a mortgage investment corporation by 12 individuals including 1 client of the Member, contrary to MFDA Rule 1.1.1(a); and
between 2014 and 2017, he provided inaccurate responses to the Member on four annual compliance questionnaires by inaccurately denying that he was engaged in any unapproved outside activities, contrary to MFDA Rule 2.1.1.
Effective December 3, 2010, MFDA Rule 1.2.1(d) was renumbered as MFDA Rule 1.2.1 (c). Effective, March 17, 2016, former MFDA Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3.2.
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.
SOURCE Mutual Fund Dealers Association of Canada
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