The Mutual Fund Dealers Association of Canada has fined a former branch manger with Global Maxfin Investment Inc. $20,000 and suspended her for allowing an unregistered person to open new accounts, offer clients advice, and process trades for them.
A settlement hearing for Anu Bala Jain was held earlier this week in Toronto before a hearing panel of the MFDA’s Central Regional Council.
The panel accepted the settlement agreement, as a consequence of which Jain has paid a $20,000 fine and costs in the amount of $2,500.
In the settlement agreement, Jain admitted that between September 2007 and February 2008 while a branch manager with Global Maxfin, she facilitated stealth advising by allowing an unregistered individual, to:
- open new accounts at Global Maxifn for 18 individuals with whom Jain never met;
- recommend and implement leveraging strategies for these clients; and
- recommend and process trades in the accounts of these clients using Jain’s representative code.
Jain also admitted that between May 26, 2010 and April 14, 2011, while a branch manager with Queen Financial Group Inc., she made false and misleading statements and omitted to provide other relevant information during the course of an investigation that followed a client complaint.
As a result of the settlement, Jain is permanently prohibited from being registered or acting as a branch manager or in any supervisory capacity for any MFDA firm. In addition, her authority to conduct securities related business with any MFDA firm is suspended for one year.
Following the suspension and prior to conducting securities related business, Jain must rewrite and pass the Conduct and Practices Handbook course offered by the Canadian Securities Institute or another course approved by the MFDA that includes content concerning business ethics and procedure.