Briefly: “MFDA bans advisor over false account info” and more news

A disciplinary hearing in the matter of Piotr (Peter) Lipski was held yesterday in Vancouver, British Columbia, before a three-person hearing panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (MFDA).

An agreed statement of facts was filed prior to the hearing in which the respondent admitted to the allegations in the notice of hearing issued on May 14, 2010.

The respondent admitted that between July 2005 and December 2007, he prepared and submitted new account application forms and loan applications for clients which he knew contained false and misleading information, thereby failing to observe the high standards of ethics and conduct in the transaction of business and be of such character and business repute as is consistent with the standards prescribed by MFDA Rule 2.1.1;

The respondent also admitted that between July 2005 and December 2007, he recommended to clients that they borrow monies to invest and assisted the clients to obtain investment loans without (i) learning the essential facts relative to each client, contrary to MFDA Rules 2.2.1(a) and 2.1.1; and (ii) ensuring that the leveraging recommendations were suitable for the clients and in keeping with the clients’ investment objectives, contrary to MFDA Rules 2.2.1(c) and 2.1.1;

The respondent further admitted that between May 2005 and April 2008, he had and continued in another gainful occupation that was not properly disclosed to or approved by the member, contrary to MFDA Rule 1.2.1(d) and that between March 2008 and April 2008, he provided false and misleading information to the member and the MFDA during the course of their respective investigations, thereby failing to observe the high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1.

The hearing panel determined that the following penalties were appropriate in the circumstances and advised that it will issue reasons for its decision in due course:

• A permanent prohibition on the authority of the respondent to conduct securities related business in any capacity over which the MFDA has jurisdiction; • A fine in the amount of $25,000; and • Costs in the amount of $5,000.

To read the notice of hearing, click here.

– Staff

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New tool allows for better client service

Financial planning software maker PlanWare has rolled out a new program which the company says will allow advisors to better service their clients. The tool supports detailed household budgets, retirement planning, educational funding, risk and insurance analysis, and estate planning for each client’s unique situation.

“It is a single tool, so efficient, that it can be used daily as the backbone of any financial planning practice to strengthen relationships with existing clients and act as a differentiator to potential clients,” said Doug Lamb, CA CFP, president of PlanWare.

Features include real net worth planning with multiple changes in income and expense items before retirement, and four self-defined stages and related expenses for retirement. Also, tax rates, income and expense descriptions can be adapted to each client, and accommodate various jurisdictions and languages.

The program is being offered at no-charge for the remainder of 2010.

– Suzanne Sharma

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Dynamic Equity Income to expand beyond trusts

Unitholders of the Dynamic Equity Income Fund have approved a change in the investment objective and strategy of the fund to allow the fund to “achieve high income and long-term growth of capital by investing primarily in equity securities that pay a dividend or distribution.”

Until now, the fund’s mandate allowed “investment primarily in business, resource, real estate, utility and other investment trusts and interest bearing securities.”

With tax treatment of trusts set to change January 1, 2011, most trusts have already been restructured as corporations, dramatically reducing the investable universe.

– Steven Lamb

(10/14/10)