May 18, 2017 (Toronto, Ontario) – A settlement hearing in the matter of Yangyi Xie (“Respondent”) was held on May 17, 2017 in Vancouver, British Columbia before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition for a period of 18 months from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA, commencing from the date of the Order;
- a fine in the amount of $5,500;
- payable in 9 monthly installments of $611.11, beginning June 30, 2017;
- costs in the amount of $2,500; and
- in the future shall comply with MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
- between August 22, 2014 and September 15, 2014, he processed three (3) authorized discretionary trades as part of a dollar-cost averaging strategy in relation to one (1) client, contrary to MFDA Rules 1.1.2, 2.5.1, 2.3.1, and 2.1.1;
- between August 2014 and October 2014, he falsified the signature of one (1) client on four (4) account forms, contrary to MFDA Rule 2.1.1; and
- on September 26, 2014, he failed to comply with a client’s trade instructions and engaged in unauthorized discretionary trading by processing two (2) trades, contrary to MFDA Rules 2.3.1 and 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Coquitlam, British Columbia 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 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.