December 1, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Serge Luc Robichaud (“Respondent”). In its Notice of Hearing dated November 15, 2017, 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 about January and April 2015, the Respondent entered into a referral arrangement with a third party, referred at least 11 clients to the third party and received compensation from the third party, all of which occurred outside the facilities of the Member, thereby engaging in conduct contrary to the Member’s policies and procedures, MFDA Rules 1.1.2, 2.5.1, 2.4.2, and 2.1.1, and sections 13.7 and 13.8 of National Instrument 31-103.
Allegation #2: Between about June 2015 and January 2016, the Respondent provided false or misleading statements to:
- a Member during the course of its investigation into his conduct, thereby interfering with the Member’s ability to supervise and investigate the Respondent’s conduct, contrary to MFDA Rule 2.1.1; and
- MFDA Staff (“Staff”) during the course of its investigation into his conduct, thereby interfering with Staff’s ability to conduct its investigation, contrary to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1.
Allegation #3: In August 2015, the Respondent provided false and misleading responses to a questionnaire from the Member with whom he seeking to become registered, when he stated that, among other things:
- his mutual fund registration with his previous Member had been terminated in good standing, when it had not; and
- he had not ever been terminated based on being accused of violating industry rules or standards of business conduct, when he had;
thereby misleading the Member, and interfering with its ability to conduct due diligence on the proficiency and suitability of an individual seeking to become registered with the Member, contrary to MFDA Rule 2.1.1.
Allegation #4: Between about September 2010 and October 2015, the Respondent obtained and maintained 22 blank or partially completed pre-signed account forms in respect of seven clients, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1 and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Atlantic Regional Council on January 30, 2018 at 10:00 a.m. (Atlantic), 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 matters. The appearance will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Moncton, New Brunswick at a time and venue to be announced.
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 83,000 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.