The Mutual Fund Dealers Association of Canada (MFDA) has banned a former mutual fund salesperson and branch manager for PFSL Investments Canada Ltd. and fined him $300,000 for engaging in outside business activities by selling exempt securities that were not approved by the firm.
At an MFDA hearing in Edmonton earlier this week, Spruce Grove, Alta. resident Ricardo John Cavalli admitted that from January 2006 to July 2009 he sold three different exempt securities that were not sold through the facilities of PFSL, and that he did not disclose or seek approval from the mutual fund dealer for the sales.
The MFDA hearing panel imposed the following penalties and costs on Cavalli: a permanent prohibition to conduct securities related business in any capacity over which the MFDA has jurisdiction; a $300,000 fine; and $7,500 in costs.
The MFDA began its investigation in April 2010, after receiving a complaint from a PFSL client.
Cavalli was terminated by PFSL on May 14, 2010.