Order

WHEREAS on December 16, 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 Tim Long Chang (“Respondent”);

AND WHEREAS on March 13, 2017, the first appearance in this proceeding was held by teleconference before one public representative of a Regional Council acting on behalf of a hearing panel of the Central Regional Council of the MFDA (“Hearing Panel”), pursuant to section 19.13(b) of MFDA By-law No. 1;

AND WHEREAS the Respondent did not attend the first appearance, despite being properly served with the Notice of Hearing;

AND WHEREAS on August 15, 2017, the Hearing Panel conducted a hearing on the merits of this matter (“Hearing”);

AND WHEREAS the Respondent did not file a Reply in this proceeding; did not attend the Hearing; and was not represented by counsel at the Hearing;

AND WHEREAS the Hearing Panel considered the evidence and submissions presented by Staff of the MFDA at the Hearing;

AND WHEREAS the Hearing Panel found that:

1. Between about November 2012 and November 2014, the Respondent engaged in a dual occupation, which was not approved by the Member, contrary to MFDA Rules 1.2.1(c) (now Rule 1.3.2) and 2.1.1;
2. In December 2012, the Respondent misled the Member when he falsely represented to the Member that he did not have an active role and did not engage in client related activities at his dual occupation, contrary to MFDA Rule 2.1.1;
3. Between about February 2012 and November 2014, the Respondent failed to report to the Member within 2 business days, or at all, the fact that he was named as a respondent in a regulatory disciplinary proceeding commenced against him, contrary to MFDA Policy No. 6, subsection 4.1(c) and MFDA Rule 1.2.2(b) (now Rule 1.4(b)); and
4. In May 2014, the Respondent offered to directly reimburse a client for a loss or fee that the client was to incur upon the transfer of the client’s investments to an account serviced by the Respondent, thereby engaging in personal financial dealings with the client which gave rise to a conflict or potential conflict of interest 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 2.1.4 and 2.1.1.

IT IS HEREBY ORDERED THAT:

1. the Respondent is prohibited for a period of two years from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;

2. the Respondent shall pay a fine in the amount of $20,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;

3. the Respondent shall pay costs of this proceeding in the amount of $5,000, pursuant to s. 24.2 of MFDA By-law No. 1; and

4. if at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.