May 4, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Richard Kenneth Giuliani (“Respondent”) by Notice of Hearing dated October 9, 2017.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this matter will take place May 10, 2018, commencing at 10:00 a.m. (Eastern) or as soon thereafter as the matter can be heard, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:
- between September 29, 2006 and December 14, 2015, had and continued in a dual occupation by acting as co-executor and co-trustee of LC’s estate, which dual occupation was not disclosed to the Member until November 2015 and was not approved by the Member, contrary to MFDA Rule 1.2.1(c) (now MFDA Rule 1.3.2) and 2.1.1;
- between March 19, 2008 and April 23, 2010, while acting as a co-trustee, he opened six trust accounts at the Member for the benefit LC’s grandchildren and processed trades in the accounts where he determined one or more of the elements of each trade, thereby accepting or acting upon a general power of attorney or similar authorization in favour of the Respondent, and engaging in authorized discretionary trading, contrary to MFDA Rules 2.3.1, 2.1.4 and 2.1.1; and
- in December 2010, failed to notify the Member, within two business days that he was named as a Respondent in a Notice of Application, contrary to MFDA Policy No. 6.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
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 conducted business in the Burlington, Ontario area.
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.