WHEREAS on January 19, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to sections 20 and 24 of MFDA By-law No. 1 (“By-law No. 1”) in respect of Paulita Bihis (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated August 20, 2018 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;
AND WHEREAS from July 30, 2015 to October 22, 2015, the Respondent, in her capacity as Branch Manager, failed to identify regulatory concerns and take adequate supervisory action in response to information which indicated that an Approved Person for whom she had supervisory oversight, may have engaged in unauthorized discretionary trading in the accounts of a client, contrary to MFDA Rules 1.1.2, 2.5.1, 2.5.5(f), and 2.1.1 and section 3 of MFDA Policy No. 3;
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- the Respondent shall be prohibited from acting as a branch manager or acting in any other MFDA related supervisory capacity while in the employ of or associated with any MFDA Member for a period of one year commencing from the date of the final Order herein, pursuant to s. 24.1.1(f) of By-law No. 1;
- the Respondent shall pay a fine in the amount of $5,000, pursuant to s. 24.1.1(b) of By-law No. 1;
- the Respondent shall pay costs in the amount of $5,000, pursuant to s. 24.2 of By-law No. 1; and.
- the Respondent shall in the future comply with MFDA Rules 1.1.2, 2.5.1, 2.5.5(f), and 2.1.1 and section 3 of MFDA Policy No. 3.
Paul M. MoorePaul M. MooreChair
Brigitte J. GeislerBrigitte J. GeislerIndustry Representative
Kenneth P. MannKenneth P. MannIndustry Representative