TORONTO, Sept. 13, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Israel (Steve) Notis ("Respondent"). In its Notice of Hearing dated August 26, 2019 ("Notice of Hearing"), Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: Between November 2016 and March 2017, the Respondent engaged in personal financial dealings with a client of the Member by obtaining funds from the client that he pooled with his own funds to purchase an investment property, contrary to the Member's policies and procedures and MFDA Rules 2.1.4, 2.1.1, and 1.1.2 and 2.5.1.
Allegation #2: Between June 2015 and March 2017, the Respondent had and continued in outside activities that were not disclosed to and approved by the Member, including:
engaging in the purchase and resale of an investment property;
serving on the board of directors of a gold exploration corporation; and
serving as a representative for a foreign corporation to facilitate its collection of debts, contrary to the Member's policies and procedures and MFDA Rules 1.2.1(c) (now 1.3.2), 2.1.1, and 2.5.1 and 1.1.2.
Allegation #3: Between at least 2014 and 2017, the Respondent obtained, possessed and, in some instances, used to process transactions, 70 pre-signed account forms, contrary to the Member's policies and procedures and MFDA Rules 2.1.1, 1.1.2, and 2.5.1.
Allegation #4: Between July 2014 and March 2017, the Respondent falsely indicated on the Member's Annual Consultant Certificate that he: (i) did not possess and use pre-signed forms; (ii) was not engaged in any outside activities; and (iii) had reviewed and was compliant with the Member's policies and procedures, contrary to MFDA Rule 2.1.1.
Allegation #5: Between May 2017 and June 2017, the Respondent misled the Member during the course of an investigation into his conduct, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on October 8, 2019 at 9:30 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact email@example.com to obtain particulars.
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 On March 14, 2016, Rule 1.2.1(c) was revised and renumbered as Rule 1.3.2.
SOURCE Mutual Fund Dealers Association of Canada
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