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Order
File No. 201241






IN THE MATTER OF A DISCIPLINARY HEARING
PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA


Re: Robert Bruce Rush



ORDER


WHEREAS on November 21, 2012, the Mutual Fund Dealers Association of Canada
(the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA By-law No.
1 in respect of a disciplinary proceeding commenced against Robert Bruce Rush (the
“Respondent”);

AND WHEREAS the first appearance in this proceeding took place before a hearing
panel of the Pacific Regional Council of the MFDA (the “Hearing Panel”) on January 16, 2013;

AND WHEREAS a further appearance in this matter took place before the Hearing
Panel on April 19, 2013, at which time the Hearing Panel adjourned the hearing on the merits
scheduled to occur on April 29 to May 1, 2013, and ordered the parties to attend a further
appearance by teleconference on April 29, 2013 to reschedule the hearing on the merits;

AND WHEREAS this proceeding resumed on April 29, 2013 by teleconference before
the Hearing Panel, where the Hearing Panel ordered that the hearing on its merits shall take place on
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July 11-12, 2013 in Vancouver, British Columbia;

AND WHEREAS the misconduct phase of the hearing on the merits was conducted from
July 11-12, and on November 12, 2013, during which time the Hearing Panel heard the evidence
and submissions of Staff of the MFDA (“Staff”), and no one attended on behalf of the
Respondent;

AND WHEREAS the penalty phase of the hearing on the merits was conducted on
November 13, 2013, during which time the Hearing Panel heard the submissions of Staff, and no
one attended on behalf of the Respondent;

AND WHEREAS in the opinion of the Hearing Panel:

a) between January 2007 and November 28, 2007 the Respondent engaged in securities
related business that was not carried on for the account of the Member and through
the facilities of the Member by recommending, referring, selling or facilitating the
sale of securities to at least clients KC and DC, and possibly to two other clients and
11 other individuals, outside the Member, contrary to MFDA Rule 1.1.1(a) and 2.1.1;
b) between January 2007 and November 28, 2007, the Respondent had and continued in
another gainful occupation that was not disclosed to and approved by the Member by
recommending, referring, selling or facilitating the sale of securities to at least clients
KC and DC, and possibly to two other clients and 11 other individuals, outside the
Member, contrary to MFDA Rule 1.2.1(d);
c) between January 2007 and November 28, 2007, the Respondent failed to comply with
the Member’s policies and procedures with respect to engaging in outside business
activities, contrary to MFDA Rules 1.1.2 and 2.5.1, and MFDA Rule 2.1.1; and
d) commencing February 10, 2011, the Respondent has failed to cooperate with an
investigation commenced by the MFDA by failing to provide information and
documents concerning the matters under investigation and by failing to attend an
interview, as requested by MFDA Staff during the course of the investigation,
contrary to s. 22.1 of MFDA By-law No. 1;
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IT IS HEREBY ORDERED THAT:

1.
the Respondent is permanently prohibited from conducting securities related business in
any capacity while in the employ of or associated with any MFDA Member, pursuant to s.
24.1.1(e) of MFDA By-Law No. 1;

2.
the Respondent shall pay a fine in the amount of $90,000, pursuant to section 24.1.1(b) of
MFDA By-law No. 1;

3.
the Respondent shall pay costs to the MFDA in the amount of $10,000, pursuant to s.
24.2 of MFDA By-law No. 1; and

4.
if at any time, a non-party to this proceeding requests production of, or access to, any
materials filed in, or the record of, this proceeding, including any exhibits or transcripts, then the
MFDA Corporate Secretary shall not provide copies of, or access to, the requested documents to
the non-party without first redacting from them any and all intimate financial or personal
information contained in the requested documents, pursuant to Rules 1.8(2) and (5) of the MFDA
Rules of Procedure.

DATED this 2nd day of February, 2014.

“Jean P. Whittow”
Jean P. Whittow, Q.C.,

Chair

“Elaine Davison”
Elaine Davison,

Industry Representative

“Cecilia Macharia”
Cecilia Macharia,
Industry Representative

DM 369270 v2

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