WHEREAS on November 24, 2016, the Mutual Fund Dealers Association of Canada (“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 Steven Thomas Bott (“Respondent”);
AND WHEREAS on April 5, 2017 the hearing panel of the Central Regional Council of the MFDA (“Hearing Panel”) conducted a hearing of the matters as described in the Notice of Hearing;
AND WHEREAS the Respondent failed to serve and file a Reply to the Notice of Hearing;
AND WHEREAS no one appeared on behalf of the Respondent and no materials were filed on behalf of the Respondent;
AND WHEREAS counsel for Staff of the MFDA made submissions to the Hearing Panel;
AND WHEREAS in the opinion of the Hearing Panel:
- between May 16, 2013 and February 27, 2015, the Respondent was indebted to a client in the amount of approximately $14,050 and was a joint owner of a bank account with the client, thereby engaging in personal financial dealings with a client which gave rise to a conflict or potential conflict of interest between the Respondent and the client that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 1.1.2, 2.1.1, 2.1.4 and 2.5.1.
IT IS HEREBY ORDERED THAT:
- The Respondent is permanently prohibited from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
- The Respondent shall pay a fine in the amount of $25,000 pursuant to s. 24.1.1(b) of MFDA By-law No. 1; and
- The Respondent shall pay costs in the amount of $5,000 pursuant to s. 24.2 of MFDA By-law No. 1.
Martin L. FriedlandMartin L. FriedlandChair
Guenther W. K. KlebergGuenther W. K. KlebergIndustry Representative
Kenneth P. MannKenneth P. MannIndustry Representative