IN THE MATTER OF Adib Khaldi - Motion Hearing

HALIFAX, NS, Sept. 12, 2023 /CNW/ - A motion has been scheduled before a Hearing Panel of the Mutual Fund Dealer Division of the Canadian Investment Regulatory Organization (CIRO) in the matter of Adib Khaldi.

The motion is open to the public, unless the hearing panel orders otherwise. The decision of the hearing panel will be made available at www.mfda.ca.

Motion Date:               September 13, 2023 at 10:00 am Atlantic Time

Location:                     Halifax, Nova Scotia (via videoconference)

Members of the public who would like to obtain further particulars should contact [email protected].

The motion relates to a disciplinary proceeding initiated against the respondent. The allegations are:

1. Allegation #1: Between July 2020 and September 2020, the Respondent engaged in securities related business outside the Member by providing investment advice to individuals in respect of non-mutual fund securities through the use of an online forum, contrary to MFDA Rules 1.1.1, 2.1.1, and 1.1.2 (as it relates to Rule 2.5.1).
   
   
2. Allegation #2: Between July 2020 and September 2020, the Respondent engaged in an unapproved outside activity by receiving monthly subscription payments in relation to an online forum where he provided investment advice to individuals, contrary to the Member's policies and procedures and MFDA Rules 1.3, 2.1.1, and 1.1.2 (as it relates to Rule 2.5.1).
   
   
3. Allegation #3: Between July 2019 and January 2020, the Respondent processed 18 transactions in respect of 13 clients as redemptions and purchases, rather than as switches, thereby:

a.      engaging in conduct which gave rise to a conflict of interest which the Respondent failed to disclose to the Member, or ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 1.4[1] and 2.1.1; or

b.      failing to comply with the Member's policies and procedures with respect to the processing of trades as switches, contrary to MFDA Rules 2.1.1 and 1.1.2 (as it relates to Rule 2.5.1).

The Notice of Hearing which sets out the allegations is available at:

Khaldi, Adib ? Notice of Hearing

The motion is being brought by Enforcement Staff seeking an order to amend the Notice of Hearing to incorporate 10 additional clients and approximately 35 redemptions and approximately 49 purchases that should have been processed as switches which ought to have been included in Allegation #3 of the Notice of Hearing.

During the period described in the Notice of Hearing, the Respondent conducted business in the Dartmouth, Nova Scotia area.

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All information about disciplinary proceedings relating to current and former member firms and individual registrants is available in the Enforcement section of the IIROC website for investment dealer disciplinary proceedings and the MFDA website for mutual fund dealer disciplinary proceedings.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE New Self-Regulatory Organization of Canada