April 9, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of Raymond Louis Blais (“Respondent”). In its Notice of Hearing dated February 22, 2018, 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 at least 2003 and November 3, 2015, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Members he was registered with, by:
- arranging for at least 81 clients and 40 other individuals to open online discount brokerage accounts outside the Members; and/or
- recommending trades, processing trades or otherwise conducting acts in furtherance of trades with respect to securities for the accounts,
contrary to MFDA Rules 1.1.1 and 2.1.1, and the terms of the Respondent’s registration in the securities industry.
Allegation #2: Between at least 2003 and November 3, 2015, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Members he was registered with, by:
- arranging for at least 81 clients and 40 other individuals to open online discount brokerage accounts outside the Members, and assisting the clients and other individuals to invest in securities in the accounts; and/or
- recommending or assisting clients and other individuals to purchase precious metals;
contrary to MFDA Rules 1.2.1(d) [subsequently 1.2.1(c)] and 2.1.1.
Allegation #3: Between June 2007 and November 3, 2015, the Respondent prepared and submitted new account application forms and investment loan applications for client AS which the Respondent knew or ought to have known contained false, misleading or incorrect information, thereby failing to learn and accurately record essential Know-Your-Client factors relating to the client, contrary to MFDA Rules 2.2.1 and 2.1.1, and the policies and procedures of the Member.
Allegation #4: Between June 2007 and November 3, 2015, the Respondent failed to ensure that the leveraged investment recommendations that he made to client AS were suitable for the client and in keeping with the client’s investment objectives, having regard to the client’s “Know Your Client” information and financial circumstances, including but not limited to the client’s ability to afford the costs associated with the investment loans and withstand investment losses, contrary to MFDA Rules 2.2.1 and 2.1.1, and the policies and procedures of the Member.
Allegation #5: Between June 2007 and November 3, 2015, the Respondent misrepresented, failed to fully and adequately explain, or omitted to explain, the risks, benefits, material assumptions, features and costs of a leveraged investment strategy that he recommended to client AS, thereby failing to ensure that the leveraged investment recommendations were suitable for client AS and in keeping with the client’s investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on April 25, 2018 at 10:00 a.m. (Eastern), 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.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business from a branch located in Sudbury, Ontario.
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 82,000 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.