WHEREAS on November 15, 2017, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA By-law No. 1 (“By-law No. 1”) in respect of Serge Luc Robichaud (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA dated October 23, 2018 (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 Hearing Panel is of the opinion that the Respondent:
- between January and April 2015, entered into a referral arrangement with a third party, referred at least 11 clients to the third party, and received compensation from the third party, all of which occurred outside the facilities of the Member, thereby engaging in conduct contrary to the Member’s policies and procedures, MFDA Rules 1.1.2, 2.5.1, 2.4.2, and 2.1.1, and sections 13.7 and 13.8 of National Instrument 31-103;
- between about June 2015 and January 2016, provided false or misleading statements to a Member during the course of its investigation into his conduct, thereby interfering with the Member’s ability to supervise and investigate the Respondent’s conduct, and to MFDA Staff during the course of its investigation into his conduct, contrary to MFDA Rule 2.1.1; and
- between about September 2010 and August 6, 2015, obtained and maintained 22 blank or partially completed pre-signed account forms in respect of seven clients, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1 and 2.1.1.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- the Respondent shall be suspended from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of eight (8) weeks commencing from the date of the final Order herein, pursuant to s. 24.1.1(c) of By-law No. 1;
- the Respondent shall pay a fine in the amount of $20,000, 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 future comply with MFDA Rules 1.1.2, 2.4.2, 2.5.1, and Rule 2.1.1, and sections 13.7 and 13.8 of National Instrument 31-103.
R. Scott PeacockR. Scott PeacockChair
Jason DowneyJason DowneyIndustry Representative
Patrick GalarneauPatrick GalarneauIndustry Representative