Order

WHEREAS on January 8, 2018, 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 in respect of a disciplinary proceeding commenced against Yuk Hang Sam Cheung (the “Respondent”);

AND WHEREAS the first appearance in this hearing was held by teleconference before a panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on March 22, 2018;

AND WHEREAS no one appeared on behalf of the Respondent, although properly served as appears from the Affidavit of Norman Ng sworn on February 13, 2018;

AND WHEREAS on November 14, 2018 the Hearing Panel conducted a hearing of the matters as described in the Notice of Hearing;

AND WHEREAS the Hearing Panel is of the opinion that:

1. Between 2012 and 2015, the Respondent engaged in securities related business which was not carried on for the account of the Member or through its facilities by recommending, selling, facilitating the sale of, and/or making referrals in respect of the sale of investments to at least 5 clients totaling approximately $246,100, contrary to the Member’s policies and procedures, MFDA Rules 1.1.1, 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103;
2. Between 2012 and 2015, the Respondent referred clients to Approved Person HL to purchase investments outside the Member, and received at least $12,305 in referral fees for doing so, thereby participating in an unapproved referral arrangement to which the Member was not a party, contrary to the Member’s policies and procedures, MFDA Rules 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103;
3. In February 2016, the Respondent misled the Member during its investigation into his conduct when he provided false answers to the Member with respect to his knowledge of and involvement in referring clients to purchase investments outside the Member, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT:

1. 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;
2. The Respondent’s authority to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member shall be prohibited permanently, pursuant to section 24.1.1(e) of MFDA By-law No. 1;
3. The Respondent shall pay a fine in the amount of $75,000, pursuant to section 24.1(b) of MFDA By-law No. 1; and

4. The Respondent shall pay costs in the amount of $6,000, pursuant to section 24.2 of MFDA By-law No. 1.