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Order

Re:

Order


Order
File No. 201114





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


Re: Muchoki Fungai Simba



ORDER


WHEREAS on October 31, 2011, the Mutual Fund Dealers Association of Canada (the
“MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of By-law No. 1 in respect
of a disciplinary proceeding commenced against Muchoki Fungai Simba (the “Respondent”);

AND WHEREAS the Respondent was served with the Notice of Hearing on November
3, 2011 in accordance with Rule 4.2(1)(b) of the MFDA Rules of Procedure;

AND WHEREAS the Respondent did not serve a Reply on the MFDA;

AND WHEREAS a hearing on the merits of this matter was conducted on February 6,
2012 (the “Hearing”) in Toronto, Ontario before a hearing panel of the Central Regional Council
of the MFDA (the “Hearing Panel”);

AND WHEREAS the Respondent did not attend the Hearing; was not represented by
counsel at the Hearing; and did not otherwise participate in the Hearing;

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AND WHEREAS the Hearing Panel considered the evidence filed and the submissions
of Staff of the MFDA (“MFDA Staff”);

AND WHEREAS the Hearing Panel finds that:

(i)
between February 14, 2006 and November 18, 2009, the Respondent engaged in
personal financial dealings with client BS by borrowing a total of $49,000 from
client BS, of which amount the Respondent failed to repay or otherwise account for
$43,000, contrary to MFDA Rules 2.1.4 and 2.1.1;
(ii) commencing on or about November 20, 2009, the Respondent failed to return all
client files and property of the Member and its affiliates to the Member, thereby:
(a) failing to comply with MFDA Rules 1.1.5(f) and 2.1.1;
(b) failing to comply with the Member’s policies and procedures, contrary to
MFDA Rules 2.5.1 and 2.1.1; and
(c) interfering with the Member’s ability to comply with the requirements of
MFDA Rule 5.1 to keep such books, records and documents as are necessary
for the proper recording of its business transactions, financial affairs and the
transactions it executes on behalf of others, contrary to MFDA Rules 2.5.1
and 2.1.1; and
(iii) commencing on or about September 24, 2010, the Respondent failed to provide
information and produce documentation requested by MFDA Staff during the
course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.

IT IS HEREBY ORDERED THAT:

1) The Respondent is permanently prohibited from conducting securities related
business in any capacity while in the employ of or associated with any Member of the
MFDA, pursuant to section 24.1.1(e) of MFDA By-law No. 1;
2) The Respondent shall pay a fine in the amount of $250,000, pursuant to section
24.1.1(b) of MFDA By-law No. 1;
3) The Respondent shall pay costs in the amount of $7,500, pursuant to section 24.2 of

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MFDA By-law No. 1;
4) If at any time a non-party to this proceeding requests production of or access to
documents in this proceeding that contain intimate financial or personal information,
then the MFDA Corporate Secretary shall not provide copies of or access to the
requested documents without first redacting from them any and all intimate financial
or personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of
Procedure.

DATED this 20th day of February, 2012.

“Martin Friedland”
Martin L. Friedland, C.C., Q.C.,

Chair

“Guenther Kleberg”
Guenther W. K. Kleberg,

Industry Representative

“Robert Guilday”
Robert J. Guilday,
Industry Representative

Doc 287626

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