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Order

Re:

Order

Order
File No. 201350





IN THE MATTER OF A SETTLEMENT HEARING
PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Robert Laurie Bowness


ORDER

WHEREAS on December 11, 2013, the Mutual Fund Dealers Association of Canada
(the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in
respect of Robert Laurie Bowness (the “Respondent”);

AND WHEREAS a proceeding had been commenced by Staff of the MFDA (“Staff”)
against the Respondent by Notice of Hearing issued on October 11, 2013;

AND WHEREAS the Respondent entered into a settlement agreement with Staff, dated
December 10, 2013 (the “Settlement Agreement”), in which the Respondent agreed to a
proposed settlement of matters for which the Respondent could be disciplined pursuant to
sections 20 and 24.1 of By-law No. 1;

AND WHEREAS the Respondent and Staff requested that the Hearing Panel proceed
with the Settlement Hearing on December 18, 2013, in light of the fact that notice had been
given to the public that a hearing would take place on that date, notwithstanding the fact that 10
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days notice of a Settlement Hearing had not been given to the public in accordance with Rule
15.2(1) of the MFDA Rules of Procedure (the “Rules”);

AND WHEREAS pursuant to Rules 1.5(1) and 2.2 of the Rules, the Hearing Panel has
the authority to abridge the time for the performance of any obligation under the Rules and the
Hearing Panel was of the opinion that it was in the public interest to proceed with the Settlement
Hearing on December 18, 2013;

AND WHEREAS the Respondent and Staff requested that the Hearing Panel proceed
with the Settlement Hearing on December 18, 2013 in camera, to ensure that any statements in
the Settlement Agreement which may be prejudicial to the Respondent would not be made public
until such time as the Settlement Agreement is accepted;

AND WHEREAS pursuant to Rule 15.2(2) of the Rules, the Hearing Panel has the
authority to order that all or part of the Settlement Hearing be held in the absence of the public,
having regard to the principles set out in Rule 1.8 of the Rules, which recognizes that in certain
proceedings, fairness requires that all or part of the hearing should take place in the absence of
the public, and the Hearing Panel was of the opinion that the Settlement Hearing should proceed
in camera;

AND WHEREAS the Hearing Panel considered the Settlement Agreement, and the
submissions of Staff and the Respondent;

AND WHEREAS the Hearing Panel is of the opinion that:

1.
Between September 2004 and March 2012, the Respondent obtained and maintained 68
pre-signed account forms for 26 clients and used pre-signed forms to process transactions in at
least five client accounts, contrary to MFDA Rule 2.1.1;

2.
Between May 4, 2011 and May 20, 2011, the Respondent engaged in client-authorized
discretionary trading by processing eight redemptions in the amount of $4,900 each in the
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account of client RT by photocopying one blank redemption form pre-signed by client RT and
using the copies to process the redemptions without obtaining instructions from the client as to
the selection of the mutual fund(s) to be redeemed, contrary to MFDA Rule 2.3.1; and

3.
Between 2009 and October 2011, the Respondent falsified the signatures of six clients on
a total of 16 account forms used to process transactions in the clients’ accounts, contrary to
MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a
consequence of which:

1.
The Respondent shall be prohibited for one year 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 $5,000, pursuant to section 24.1.1(b) of
MFDA By-law No. 1;

3.
The Respondent shall pay costs in the amount of $2,500, pursuant to section 24.2 of
MFDA By-law No. 1; and

4.
If at any time a non-party to this proceeding requests production of, or access to, any
materials filed in, or the record of, this proceeding, including all exhibits and transcripts, then the
MFDA Corporate Secretary shall not provide copies of, or access to, the requested documents to
the non-party 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 16th day of January, 2014.

“D. Merlin Nunn”
The Hon. D. Merlin Nunn, Q.C.,

Chair
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“Yves Duguay”
Yves Duguay,

Industry Representative

DM 367249 v2

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