MFDA announces disciplinary proceeding in respect of Arman Pekel

TORONTO, Feb. 6, 2020 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Arman Pekel ("Respondent"). In its Notice of Hearing dated January 22, 2020 ("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 August 17, 2014 and March 8, 2018, the Respondent opened a new account for a client and falsely recorded the client's address on the records of the Member as the Respondent's personal address, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 2.10, 2.5.1, or 1.1.2.

Allegation #2: Between February 1, 2017 and March 8, 2017, the Respondent deposited four cheques payable to a client, which constituted the proceeds of redemptions from the client's investment account totaling approximately $14,038.25, into his personal bank account, thereby engaging in personal financial dealings with a client which gave rise to a conflict of interest that he failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 or 2.1.1.

Allegation #3: Between March 6, 2017 and January 2, 2018, the Respondent engaged in an outside activity which was not disclosed to and approved by the Member, contrary to the Member's policies and procedures, and MFDA Rules 1.3, 2.1.1, 2.5.1, or 1.1.2.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on March 31, 2020 at 10:30 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 hearings@mfda.ca to obtain particulars.

A copy of the Notice of Hearing is available on the MFDA website at ww.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in Toronto, Ontario.

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.

SOURCE Mutual Fund Dealers Association of Canada