TORONTO, May 17, 2024
/CNW/ - Following a disciplinary hearing held on August 16 and November 2,
2022, a hearing panel of the Canadian Investment Regulatory
Organization (CIRO) under the Mutual Fund Dealer Rules found that
Muhamad Asghar Sadiq:
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- failed to use due diligence to learn and accurately record or
intentionally misrepresented the essential facts relative to at
least 11 clients;
- submitted supporting documents to the Member in connection with
loan applications of at least four clients, which he knew or ought
to have known contained false, incorrect, or misleading
information;
- failed to ensure that the leveraged investment strategy and the
underlying investments that he recommended and implemented in the
accounts of at least 10 clients were suitable for the clients, in
keeping with the clients' risk tolerances, investment knowledge,
and ability to withstand the potential costs and investment
losses;
- failed to fully and adequately explain, or omitted to explain
the risks, benefits, material assumptions, costs, and features of
the leveraged investment strategy and the underlying investments
that he recommended and implemented in the accounts of at least 11
clients, thereby failing to ensure that the leverage investment
strategy and underlying investments were suitable for the
clients;
- engaged in securities related business on behalf of another
Member that he was not registered with;
- misappropriated or failed to account for monies received from
seven clients and one individual; and
- engaged in personal financial dealings with a client by
providing the client with monies to pay her investment loan
payments, which gave rise to a conflict or potential conflict of
interest that he did not disclose to the Member or otherwise
address by the exercise of responsible business judgment influenced
only by the best interests of the client.
The hearing panel imposed the following sanctions
on Muhamad Sadiq:
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- permanent prohibition from conducting securities related
business in any capacity while in the employ of or associated with
any MFDA Member; and
- a fine in the amount of $750,000.
Muhamad Sadiq is also required to
pay costs in the amount of $ 49,662.50.
The hearing panel's reasons for decision dated April 24, 2024, is available at:
Re Sadiq 2024 CIRO 48
During the period described in the Notice of Hearing,
Muhamad Sadiq carried on business in
the Mississauga, Ontario area.
All information about disciplinary proceedings relating to
current and former member firms and individual registrants under
the Investment Dealer and Partially Consolidated Rules (for
investment dealers), the Mutual Fund Dealer Rules (for mutual fund
dealers) and the Universal Market Integrity Rules (UMIR) is
available on CIRO's website.
Background information regarding the qualifications and
disciplinary history, if any, of advisors currently employed by
CIRO-regulated investment firms is available free of charge through
the AdvisorReport service. Information on how to
make dealer, advisor or marketplace-related complaints is available
by calling 1-877-442-4322.
CIRO investigates possible misconduct by its member firms and
individual registrants. It can bring disciplinary proceedings which
may result in sanctions including fines, suspensions, permanent
bars, expulsion from membership, or termination of rights and
privileges for individuals and firms.
The Canadian Investment Regulatory Organization (CIRO) is the
national self-regulatory organization that oversees all investment
dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is
committed to the protection of investors, providing efficient and
consistent regulation, and building Canadians' trust in financial
regulation and the people managing their investments. For more
information, visit www.ciro.ca.
SOURCE Canadian Investment Regulatory Organization (CIRO)