May 11, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Richard Kenneth Giuliani (“Respondent”) was held on May 10, 2018 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated May 3, 2018 (“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 from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one year;
- a fine in the amount of $20,000 (“Fine”);
- costs in the amount of $5,000 (“Costs”);
- payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
- $5,000 (Costs) shall be paid upon acceptance of the Settlement Agreement;
- $1,666.67 (Fine) on or before May 25, 2018;
- $1,666.67 (Fine) on or before June 29, 2018;
- $1,666.67 (Fine) on or before July 27, 2018;
- $1,666.67 (Fine) on or before August 31, 2018;
- $1,666.67 (Fine) on or before September 28, 2018;
- $1,666.67 (Fine) on or before October 26, 2018;
- $1,666.67 (Fine) on or before November 30, 2018;
- $1,666.67 (Fine) on or before December 28, 2018;
- $1,666.67 (Fine) on or before January 25, 2019;
- $1,666.67 (Fine) on or before February 22, 2019;
- $1,666.67 (Fine) on or before March 29, 2019; and
- $1,666.67 (Fine) on or before April 26, 2019.
- if the Respondent fails to make any of the payments described above then,
- any outstanding balance of the Fine owed shall immediately become due and payable to the MFDA; and
- the Respondent shall continue to be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine owed is paid to the MFDA.
In the Settlement Agreement, the Respondent admitted that:
- between September 29, 2006 and December 14, 2015, he had and continued in a dual occupation by acting as co-executor 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 1.3.2 (formerly MFDA Rule 1.2.1(d)) 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, he 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.
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 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.