May 1, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Rhys William Douglas Martell (“Respondent”) was held yesterday in Vancouver, British Columbia before a 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 suspension from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one month;
- a fine in the amount of $30,000;
- costs in the amount of $2,500; and
- in the future shall comply with MFDA Rules 1.1.2, 2.5.1, 5.1(b), 2.3.1 and 2.1.1.
In the Settlement Agreement dated October 31, 2017, the Respondent admitted that:
- between August 2012 and April 2015, he processed transactions in the accounts of clients, without obtaining client instructions in respect of the amount of the transaction, the mutual fund being purchased or sold, or timing of the transactions, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1; and
- between July 23, 2015 and July 25, 2015, he failed to record and maintain evidence of client trade instructions with respect to transactions in client accounts, contrary to the Member’s policies and procedures, and MFDA Rules 1.1.2, 2.5.1, 2.1.1, and 5.1(b).
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 Abbotsford, 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 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.