The Mutual Fund Dealers Association of Canada has fined a former Ontario mutual fund salesman and branch manager $160,000 for breaching MFDA rules.
A disciplinary hearing in the matter of Stephen Popen was held Thursday in Toronto, before a hearing panel of the MFDA’s Central Regional Council.
The panel found that the allegations against Popen made by MFDA staff in the April 27, 2012 notice of hearing had been established.
Popen was registered in Ontario with Investors Group Financial Services Inc. as a mutual fund salesperson from December 1999 to September 2009. He was also a branch manager from May 2004 to September 2009. He was terminated by Investors Group on Sept. 17, 2009.
The hearing panel found that from April 2007 to September 2009, Popen operated a business services and consulting firm without disclosing his occupation to Investors Group.
In addition between July 2008 and September 2009, Popen engaged in personal financial dealings with clients by borrowing directly or indirectly through his company a total of $225,000 from three clients.
Beginning in February 2011, Popen failed to produce for inspection copies of documents and records requested by the MFDA during the course of its investigation.
The pane permanently prohibited Popen conducting securities related business in any capacity while in the employ of or associated with any MFDA member. It also fined him a total of $160,000, and ordered him to pay costs of $7,500.
The panel advised that it would issue written reasons for its decision in due course.