Brampton Businessman Fined $13,000 For Violating Mutual Fund By-Laws

Published August 31, 2019 at 3:50 am

The Mutual Fund Dealers Association of Canada (“MFDA”) just charged a Brampton businessman after breaking MFDA by-laws.

The Mutual Fund Dealers Association of Canada (“MFDA”) just charged a Brampton businessman after breaking MFDA by-laws.

Mubarak Baksh, who works for Canfin Magellan Investments Inc, must pay a fine of $13,000 and other costs of $2,500.

Baksh has been registered in the mutual fund industry since March 2007; however, it was not until May 2009 when he started working as a mutual fund salesperson with Canfin Magellan Investments Inc. in 2009. Though Canfin Magellan Investments Inc is located at 680 Rexdale Blvd, Baksh only conducted business in Brampton.

According to the MFDA, Between December 2014 and January 2017, Baksh obtained and possessed, 31 pre-signed account forms in respect of 13 clients.

The pre-signed account forms included 15 Trade Instruction forms, two Tax-Free Savings Account (“TFSA”) Application forms, six Plan Application forms, two Client Application forms, an Investment Account Application form, two Canada Revenue Agency Direct Transfer forms, two Transfer Authorization for Registered Investments (“TARI”) forms and a Dealer/Advisor Change form.

The MFDA states that Baksh broke MFDA Rule 2.1.1, which states: 

Each Member and each Approved Person of a Member shall:

  1. deal fairly, honestly and in good faith with its clients;
  2. observe high standards of ethics and conduct in the transaction of business;
  3. not engage in any business conduct or practice which is unbecoming or detrimental to the public interest; and
  4. be of such character and business repute and have such experience and training as is consistent with the standards described in this Rule 2.1.1, or as may be prescribed by the Corporation.

The settlement hearing took place on August 29 in Toronto where Baksh admitted that he obtained and possessed pre-signed account forms. Baksh continues to work in Brampton. 

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