MFDA announces disciplinary proceeding in respect of Zahir Lehri
TORONTO, Nov. 4, 2022 /CNW/ - The Mutual Fund Dealers Association of Canada (the "MFDA") has commenced disciplinary proceedings in respect of Zahir Hussain Lehri (the "Respondent").
TORONTO, Nov. 4, 2022 /CNW/ - The Mutual Fund Dealers Association of Canada (the "MFDA") has commenced disciplinary proceedings in respect of Zahir Hussain Lehri (the "Respondent"). In its Notice of Hearing dated October 13, 2022 (the "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 May 2015 and August 2018, the Respondent allowed an Approved Person who was not registered with the Member to:
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open new accounts at the Member for clients; |
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complete and submit for processing Know-Your-Client forms; |
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implement a leveraging strategy for these clients using false or inaccurate client financial documentation; and |
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process trades in the accounts of these clients using the Respondent's representative code; |
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thereby: |
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a) |
facilitating stealth advising by the other Approved Person, contrary to MFDA Rules 1.1.11 and 2.1.1; or |
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b) |
failing to use due diligence to learn the essential facts relative to the clients and to ensure that the leveraging strategy and investments that were recommended and implemented for clients were suitable, contrary to MFDA Rules 2.2.12 and 2.1.1. |
Allegation #2: Commencing May 2017, the Respondent misappropriated or failed to account for monies received from a client and another individual, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing October 2020, the Respondent failed to cooperate with an investigation into his conduct by Staff of the MFDA, contrary to section 22.1 of MFDA By-law No. 1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on December 13, 2022 at 10:00 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 issues. 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 protected] to obtain particulars.
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 conducted business in the Brampton, Ontario 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 76,695 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.
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1 Effective January 21, 2021, MFDA Rule 1.1.1 was amended. As the Respondent engaged in the alleged misconduct addressed in this proceeding prior to January 21, 2021, in this proceeding, Staff is relying on the version of MFDA Rule 1.1.1 that was in effect prior to the January 21, 2021 amendments. |
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2 Effective December 31, 2021, MFDA Rule 2.2.1 was amended. As the Respondent engaged in the alleged misconduct addressed in this proceeding prior to December 31, 2021, in this proceeding, Staff is relying on the version of MFDA Rule 2.2.1 that was in effect prior to the December 31, 2021 amendments. |
SOURCE Mutual Fund Dealers Association of Canada
