TORONTO, Sept. 30, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Lloyd A. Snyder (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated September 30, 2013.
An appearance in this proceeding took place today by teleconference before a three-member Hearing Panel of the MFDA's Atlantic Regional Council.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this matter will take place on December 9, 2014, commencing at 1:00 p.m. (Atlantic), or as soon thereafter as the hearing can be held, in the hearing room located the Prince Edward Island Regulatory and Appeals Commission, 134 Kent Street, Suite 501, Charlottetown, PEI.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. The proposed settlement agreement concerns allegations that:
a) | between 2005 and 2007, the Respondent failed to fully and adequately explain the risks, benefits, material assumptions, features and costs of the leveraged investment recommendations that he implemented in the accounts of at least 15 clients, thereby failing to ensure that the leveraged investment recommendations were suitable and appropriate for the clients and in keeping with their investments objectives, contrary to MFDA Rules 2.2.1 and 2.1.1; and |
b) | between 2005 and 2007, the Respondent failed to ensure that the leveraged investment recommendations that he implemented in the accounts of at least 15 clients were suitable and appropriate for the clients and in keeping with their investment objectives, having regard to the clients' relevant "Know Your Client" factors including, but not limited to, the clients' ability to afford the costs associated with the investment loans, their ability to withstand investment losses, and their risk tolerance, contrary to MFDA Rules 2.2.1 and 2.1.1. |
The hearing will be open to the public, unless and to the extent that the Hearing Panel determines that all or part of the hearing should proceed in the absence of the public. If the Hearing Panel accepts the settlement agreement, then a copy of the decision of the Hearing Panel and the settlement agreement will be made available to the public.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Prince Edward Island.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 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
