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
Raymond Louis Blais
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 April 25, 2018 at 10:00 a.m. (Eastern), or as soon thereafter as the hearing can be held, concerning a disciplinary proceeding commenced by the MFDA against Raymond Louis Blais (“Respondent”).
DATED: Feb 22, 2018
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 at least 2003 and November 3, 2015, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Members he was registered with, by:
- arranging for at least 81 clients and 40 other individuals to open online discount brokerage accounts outside the Members; and/or
- recommending trades, processing trades or otherwise conducting acts in furtherance of trades with respect to securities for the accounts,
contrary to MFDA Rules 1.1.1 and 2.1.1, and the terms of the Respondent’s registration in the securities industry
Allegation #2: Between at least 2003 and November 3, 2015, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Members he was registered with, by:
- arranging for at least 81 clients and 40 other individuals to open online discount brokerage accounts outside the Members, and assisting the clients and other individuals to invest in securities in the accounts; and/or
- recommending or assisting clients and other individuals to purchase precious metals;
contrary to MFDA Rules 1.2.1(d) [subsequently 1.2.1(c)] and 2.1.1.
Allegation #3: Between June 2007 and November 3, 2015, the Respondent prepared and submitted new account application forms and investment loan applications for client AS which the Respondent knew or ought to have known contained false, misleading or incorrect information, thereby failing to learn and accurately record essential Know-Your-Client factors relating to the client, contrary to MFDA Rules 2.2.1 and 2.1.1, and the policies and procedures of the Member.
Allegation #4: Between June 2007 and November 3, 2015, the Respondent failed to ensure that the leveraged investment recommendations that he made to client AS were suitable for the client and in keeping with the client’s investment objectives, having regard to the client’s “Know Your Client” information and financial circumstances, including but not limited to the client’s ability to afford the costs associated with the investment loans and withstand investment losses, contrary to MFDA Rules 2.2.1 and 2.1.1, and the policies and procedures of the Member.
Allegation #5: Between June 2007 and November 3, 2015, the Respondent misrepresented, failed to fully and adequately explain, or omitted to explain, the risks, benefits, material assumptions, features and costs of a leveraged investment strategy that he recommended to client AS, thereby failing to ensure that the leveraged investment recommendations were suitable for client AS and in keeping with the client’s investment objectives, contrary to MFDA Rules 2.2.1 and 2.1.1.