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Home › Order 201529 - RE: Wellman, Michael



Order
File No 201529




IN THE MATTER OF A SETTLEMENT HEARING
PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA


Re: Murray Harold Wellman and Michael John Wellman



ORDER



WHEREAS on August 11, 2015, the Mutual Fund Dealers Association of Canada (the
“MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of MFDA By-law No.
1 in respect of Murray Harold Wellman and Michael John Wellman (collectively, the
“Respondents”);

AND WHEREAS the Respondents entered into a settlement agreement with Staff of the
MFDA, dated August 9, 2015 (the “Settlement Agreement”), in which the Respondents agreed to
a proposed settlement of matters for which the Respondents could be disciplined pursuant to ss.
20 and 24.1 of By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that:

(a)
between about April 2011 and October 2013, the Respondents altered the risk
tolerances, investment objectives or investment instructions that were recorded on
7 account forms in respect of 6 clients, contrary to MFDA Rule 2.1.1;

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(b)
between about January 2011 and April 2013, the Respondents obtained,
maintained and, in some instances, used to process trades, 29 pre-signed account
forms and 1 pre-signed cheque in respect of 16 clients, contrary to MFDA Rule
2.1.1; and
(c)
on February 21, 2013, the Respondents processed a trade in a client account
without documenting the client’s authorization of the trade, contrary to MFDA
Rule 2.1.1.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a
consequence of which:

1.
The Respondent, Murray Harold Wellman shall pay:

(a) a fine in the amount of $10,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1; and
(b) costs in the amount of $1,000 pursuant to s. 24.2 of MFDA By-law No. 1.

2.
The Respondent, Michael John Wellman shall pay:

(a) a fine in the amount of $10,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1; and
(b) costs in the amount of $1,000 pursuant to s. 24.2 of MFDA By-law No. 1.

3.
The Respondents shall in the future comply with MFDA Rule 2.1.1.

DATED this 29th day of October, 2015.

“Paul M. Moore”
Paul M. Moore, Q.C.

Chair
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“Kenneth P. Mann”
Kenneth P. Mann

Industry Representative

“T. Hugh McNabney”
T. Hugh McNabney

Industry Representative

DM 451030 v2

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