Order

WHEREAS on December 18, 2018, the Mutual Fund Dealers Association of Canada (the “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 Stuart Michael Gibson (the “Respondent”);

AND WHEREAS on January 15, 2019, the Respondent served and filed a Reply to the Notice of Hearing;

AND WHEREAS on March 12, 2019, the first appearance in this proceeding was held;

AND WHEREAS on August 14, 2019, the Hearing Panel conducted the hearing on the merits in this proceeding;

AND WHEREAS the Hearing Panel found that the Respondent:

1. between 2008 and September 2016, borrowed a total of $102,500 from four clients, thereby engaging in personal financial dealings with the clients which gave rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the policies and procedures of the Member, and MFDA Rules 2.1.4, 2.10, 1.1.2, and 2.1.1;
2. between November 2012 and October 2013, engaged in a dual occupation that was not approved by the Member, contrary to MFDA Rule 1.2.1(c) (now Rule 1.3.2) and 2.1.1; and
3. between 2009 and March 2016, misled the Member when he submitted annual consultant certificates to the Member in which he falsely certified that he had not borrowed money from clients and did not engage in any undisclosed outside business activity, contrary to MFDA Rule 2.1.1.

AND WHEREAS on October 2, 2019, the Hearing Panel conducted the penalty hearing in this proceeding;

IT IS HEREBY ORDERED THAT:

1. the Respondent is permanently prohibited 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 $100,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;
3. the Respondent shall pay costs in the amount of $7,500, 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.