MFDA announces disciplinary proceeding in respect of Andrew Tachauer

Type:
Hearing Notice
Rulebook connection
MFDA Rules

Contact

December 28, 2022 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (the “MFDA”) has commenced disciplinary proceedings in respect of Andrew David Tachauer (the “Respondent”). In its Notice of Hearing dated December 19, 2022 (the “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 December 2019 and February 2020, the Respondent failed to use due diligence to learn and accurately record the essential facts relative to a client, contrary to the Member’s policies and procedures and MFDA Rules 2.2.1,[1] 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #2: Between December 2019 and February 2020, the Respondent failed to use due diligence to ensure that investments that he recommended a client purchase using borrowed monies were suitable for the client, having regard to the client’s Know-Your-Client information, contrary to the Member’s policies and procedures and MFDA Rules 2.2.1, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #3: Between December 2019 and February 2020, the Respondent failed to update a client’s Know-Your-Client information when the Respondent became aware of a material change in the client’s information, contrary to the Member’s policies and procedures and MFDA Rules 2.2.4(b),[2] 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #4: In February 2020, the Respondent failed to report to the Member that a client used borrowed monies to invest, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 2.2.1 and 1.1.2 (as it relates to MFDA Rule 2.5.1).

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on February 2, 2023 at 11:00 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 issues. 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 [email protected] to obtain particulars.

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

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 76,695 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.

[1] MFDA Rule 2.2.1 was amended on December 31, 2021.  As the conduct addressed in this disciplinary proceeding pre-dated the amendment to this Rule, all contraventions addressed in this proceeding that make reference to that Rule concern the version of the Rule that was in effect between December 2019 and December 31, 2021.

[2] MFDA Rule 2.2.4 was amended on December 31, 2021. As the conduct addressed in this proceeding pre-dated the amendment to this Rule, all contraventions addressed in this proceeding that make reference to that Rule concern the version of the Rule that was in effect between December 2019 and December 31, 2021.

Type:
Hearing Notice
Rulebook connection
MFDA Rules

Contact

Other Notices associated with this Enforcement Proceeding: