This is a Third Party Document.
IN THE MATTER OF A DISCIPLINARY HEARING PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA
Sebastian Eduardo Encalada
NOTICE OF HEARING
NOTICE is hereby given that a first appearance will take place by teleconference before a hearing panel of the Central Regional Council (“Hearing Panel”) of the Mutual Fund Dealers Association of Canada (“MFDA”) in the hearing room at the MFDA offices, located at 121 King Street West, Suite 1000, Toronto, Ontario on November 14, 2017 at 9:00 a.m. (Eastern), or as soon thereafter as the hearing can be held, concerning a disciplinary proceeding commenced by the MFDA against Sebastian Eduardo Encalada (“Respondent”).
DATED: Sep 6, 2017
Director of Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9
NOTICE is further given that the MFDA alleges the following violations of the By-laws, Rules or Policies of the MFDA:
- Allegation #1: Between March 2015 and October 2015, the Respondent opened an account for an individual and processed 18 transactions in the account, without the individual’s knowledge or authorization, thereby engaging in:
- discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1; and/or
- conduct that increased the Respondent’s chances of qualifying for a bonus or other compensation through a branch incentive program, which gave rise to a conflict or potential conflict of interest with the interests of the individual that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the individual, contrary to MFDA Rules 2.1.4 and 2.1.1.
- Allegation #2: Between March 2015 and October 2015, the Respondent signed an individual’s signature or initials on two account forms in order open an account and process 18 transactions in the individual’s account, contrary to MFDA Rule 2.1.1.