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File No. 201869

IN THE MATTER OF A DISCIPLINARY HEARING PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Re: Robert William Copland

Order

(ARISING FROM HEARING ON THE MERITS ON JANUARY 29, 2019)

WHEREAS on June 20, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing (the “Notice of Hearing”) pursuant to sections 20 and 24 of By-law No. 1 in respect of a disciplinary proceeding commenced against Robert William Copland (the “Respondent”);

AND WHEREAS the Respondent did not file a Reply to the Notice of Hearing;

AND WHEREAS the first appearance in this proceeding was held before a Chair of a panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on September 11, 2018, at which time no one appeared on behalf of the Respondent, although properly served as appears from the affidavit of Jonathan Brooker sworn July 3, 2018;

AND WHEREAS at the first appearance, the Hearing Panel ordered that the hearing of this matter on its merits occur on January 29, 2019;

AND WHEREAS on January 29, 2019, the hearing on the merits proceeded as scheduled before the Hearing Panel in Toronto, Ontario, at which time no one appeared on behalf of the Respondent, although provided with notice of the hearing on the merits as shown by the: affidavit of Chris O’Rourke sworn October 4, 2018; affidavit of Carlyle Murray sworn January 23, 2019; and affidavit of Terri Ash sworn January 24, 2019;

AND WHEREAS at the Hearing of the Merits, the Hearing Panel considered the evidence and submissions presented by counsel for MFDA Staff with respect to the alleged misconduct including: the affidavit of Lucy Alfenore sworn January 24, 2019; the affidavit of Lori Bland sworn January 28, 2019; and the oral and written submissions of Staff of the MFDA;

AND WHEREAS it is the opinion of the Hearing Panel that the Respondent has engaged in the following misconduct on the basis of the evidence and submissions presented during the Hearing on the Merits, and section 20.4 of MFDA By-law No. 1 which allows the Hearing Panel to accept the facts alleged in the Notice of Hearing as having been proven and impose any of the penalties described in Section 24.1 of By-law No.1 where a Respondent does not serve a reply or attend at a hearing:

  1. between about June 2013 and October 2015, the Respondent recommended, sold or facilitated investments by four clients in a retail coffee shop business, thereby engaging in securities related business outside the Member, contrary to MFDA Rules 1.1.1 and 2.1.1;
  2. between about June 2013 and October 2015, the Respondent engaged in outside business activities with respect to one or more coffee businesses, without the knowledge or approval of the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 1.1.2, and 2.1.1;
  3. between about June 2013 and October 2015, the Respondent engaged in personal financial dealings with clients when he, among other things:
    1. established or operated a non-arm’s length coffee business with a client;
    2. opened a joint bank account with a client in respect of a non-arm’s length coffee business;
    3. recommended, sold or facilitated investments by clients in a retail coffee shop business;
    4. arranged for a client to loan monies to a non-arm’s length coffee business;
    5. arranged for or accepted a personal loan from a client; or
    6. accepted payments from a client and/or made payments to a client relating to one or more non-arm’s length coffee businesses;

    thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member, or failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.4, 1.1.2, and 2.1.1;

  4. on or about May 31, 2014, the Respondent misrepresented himself as a client’s property manager in a letter submitted in support of the client’s application to unlock a pension on the basis of financial hardship, thereby failing to observe a high standard of conduct and ethics in the transaction of business, or engaging in conduct which is unbecoming or detrimental to the public interest, contrary to MFDA Rule 2.1.1; and
  5. Commencing May 31, 2017, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-law No. 1.

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 in association 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 $175,000, 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.

DATED: Jan 29, 2019

"Paul M. Moore"

Paul M. Moore

Chair


"Brigitte J. Geisler"

Brigitte J. Geisler

Industry Representative


"Melody Potter"

Melody Potter

Industry Representative


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