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Order

Re:

Order

Order
File No. 201540




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: Rodney M. Warren



ORDER
(ARISING FROM HEARING ON THE MERITS ON MAY 5, 2016)



WHEREAS on October 15, 2015, the Mutual Fund Dealers Association of Canada (the
“MFDA”) issued a Notice of Hearing pursuant to section 24.4 of By-law No. 1 in respect of
Rodney M. Warren (the “Respondent”);

AND WHEREAS the first appearance in this proceeding took place by teleconference
before the Chair of a hearing panel of the Pacific Regional Council of the MFDA (the “Hearing
Panel”) on December 1, 2015 at 10:00 a.m. (Pacific), in accordance with s. 19.13(b) of MFDA
By-law No. 1;

AND WHEREAS the misconduct and penalty phases of the hearing on the merits were
conducted in Vancouver, British Columbia from May 3rd to 5th, 2016, during which time the
Hearing Panel heard the evidence and submissions of Staff of the MFDA (“Staff”) and the
Respondent and his counsel;

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AND WHEREAS in the opinion of the Hearing Panel:

(a) between August 2006 and January 2013, the Respondent failed to ensure that his
leveraged investment recommendations were suitable for clients DZ and EZ and
clients HN and MN having regard to the clients’ “Know-Your Client” information
and financial circumstances, including but not limited to, the clients’ age,
employment status, ability to afford the costs associated with the investment loans,
and ability to withstand investment losses, contrary to MFDA Rules 2.2.1 and 2.1.1;
and
(b) between May 22, 2012 and September 17, 2012, the Respondent failed to report a
complaint to the Member and attempted to negotiate a settlement with two clients
without the Member’s knowledge or approval, which prevented the Member from
complying with its complaint handling obligations and conducting a reasonable
supervisory investigation, contrary to MFDA Policy No. 6, subsection 4.1(a), MFDA
Policy No. 3, and MFDA Rules 2.1.1, 1.1.2 and 2.5.1.

IT IS HEREBY ORDERED THAT:

1.
the Respondent shall pay a fine in the amount of $100,000, pursuant to section 24.1.1(b)
of MFDA By-law No. 1;

2.
the Respondent shall pay costs to the MFDA attributable to the investigation and
prosecution of this matter in the amount of $10,000, pursuant to s. 24.2 of MFDA By-law No. 1;

3.
the Respondent’s authority to conduct securities related business in any capacity while in
the employ of or associated with any Member of the MFDA is suspended for 90 days
commencing on May 9, 2016, pursuant to s. 24.1.1(c) of MFDA By-law No. 1;

4.
following the 90 day suspension, in the event the Respondent seeks to become re-
registered to conduct securities related business while in the employ of or associated with a
Member of the MFDA, the Respondent shall:
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(a) be subject to strict supervision by the Member with which he becomes re-registered
for a period of twelve (12) months from the date that he becomes re-registered;
(b) be subject to close supervision by the Member with which he becomes re-registered
for a period of twelve (12) months following the strict supervision period; and
(c) be permanently prohibited from making any investment recommendations to clients
involving leveraging (the use of borrowed monies to purchase investments).

5.
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 any exhibits or 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 contained in the requested documents, pursuant to Rules 1.8(2) and (5) of the MFDA
Rules of Procedure.

DATED this 5th day of May, 2016.

“Stephen D. Gill”
Stephen D. Gill

Chair

“Holly A. Millar”
Holly A. Millar

Industry Representative

“Brian Cheung”
Brian Cheung

Industry Representative

DM 482786 v1
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