TORONTO, July 5, 2022 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of TeamMax Investment Corp. (the "Respondent") by Notice of Hearing dated November 11, 2021 ("Notice of Hearing").
The hearing of this matter on its merits was held in-person on June 24, 2022 in Toronto, Ontario, and continued electronically by videoconferenceon June 27, 2022 and June 29-30, 2022, before a three-member Hearing Panel of the MFDA's Central Regional Council. After receiving evidence and hearing submissions from MFDA Staff with respect to misconduct, the Hearing Panel found that the four allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: Between February 2016 and April 2017, the Respondent failed to adequately supervise an Approved Person with respect to concerns the Approved Person was not accurately recording client Know-Your-Client information, contrary to MFDA Rules 2.5.1, 2.2.1, 2.1.2 and MFDA Policy No. 3.
Allegation #2: Commencing on or about October 30, 2016, the Respondent failed to ensure its compliance with the terms of an Order of a MFDA Hearing Panel, dated July 8, 2014, in MFDA File No. 201406, contrary to MFDA Rules 2.1.1 and 2.1.2.
Allegation #3: Between March 2017 and October 2019, the Respondent failed to implement a Branch Review Program compliant with the requirements set out in MFDA Policy No. 5, MFDA Rule 2.5.1, and the Respondent's policies and procedures.
Allegation #4: From in or about January 2018 to October 2020, the Respondent failed to adequately detect and query uniformity in the Know-Your-Client information recorded by its Approved Persons, contrary to MFDA Rule 2.2.1 and MFDA Policy No. 2.
The Hearing Panel advised that it will issue written reasons for its decision as to misconduct in due course. Submissions with respect to sanctions will take place electronically by videoconference on July 22, 2022 at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be heard, and will continue to be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to participate should contact firstname.lastname@example.org 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 80,000 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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