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MFDA Hearing Panel issues Decision and Reasons in the matter of Blaise Szekely

TORONTO , Oct. 25, 2019 /CNW/ - A Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons dated October 24, 2019 ("Decision and Reasons") in connection with a disciplinary hearing held in Edmonton, Alberta on September 25, 2019 in the matter of Blaise Leslie Szekely ("Respondent").

In its Decision and Reasons, the Hearing Panel outlined its findings of misconduct made against the Respondent. In particular:

Allegation #1:

Commencing in November 2009, the Respondent solicited approximately $287,542 from two clients and two individuals for investment outside the Member, and has failed to fully repay or account for these monies, contrary to MFDA Rule 2.1.1;



Allegation #2:

Commencing in November 2009, the Respondent solicited approximately $287,542 from two clients and two individuals for investment outside the Member, thereby engaging in:





a)

securities related business which was not carried on for the account of the Member or through its facilities, contrary to the Member's policies and procedures, and MFDA Rules 1.1.1 and 2.1.1;



Allegation #3:

Between July 2010 and October 2016, the Respondent engaged in personal financial dealings with two clients by:





a)

soliciting approximately $80,000 for investment outside the Member, and entering into an agreement to invest the monies on behalf of the clients and pay the investment principal and interest to the clients; and





b)

soliciting approximately $10,000 for a joint investment with the Respondent in a private investment club operated by the Respondent outside the Member; which gave rise to a conflict or potential conflict of interest that the Respondent failed to disclose to the Member or in writing to the clients and failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member's policies and procedures, and MFDA Rules 2.1.4 and 2.1.1; and



Allegation #4:

Commencing on August 30, 2017, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to Section 22.1 of MFDA By-law No. 1.

 

In its Decision and Reasons, the Hearing Panel imposed the following sanctions on the Respondent:

  • a permanent prohibition from conducting securities related business in any capacity over which the MFDA has jurisdiction;
  • a global fine in the amount of $150,000 , the particulars of which are:
  • costs in the amount of $5,000 .


Copies of the Decision and Reasons and Notice of Hearing are available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent conducted business in the Edmonton, Alberta 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.

SOURCE Mutual Fund Dealers Association of Canada


View original content: http://www.newswire.ca/en/releases/archive/October2019/25/c8120.html