Order

WHEREAS on January 31, 2019, 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 Madrie Ann Secord (the “Respondent”);

AND WHEREAS the Respondent filed a Reply to the Notice of Hearing on February 19, 2019;

AND WHEREAS the Respondent filed an Amended Reply to the Notice of Hearing on June 10, 2019;

AND WHEREAS the first appearance in this hearing was held before a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on April 9, 2019 where the Respondent and counsel for Staff of the MFDA attended the first appearance by teleconference and made submissions to the Hearing Panel with respect to scheduling and other procedural matters;

AND WHEREAS a second appearance in this proceeding was held on July 9, 2019 where the Respondent and counsel for Staff of the MFDA made submissions to the Hearing Panel with respect to scheduling and other procedural matters, at which time the Chair of the Hearing Panel ordered that the hearing occur on August 7, 2019;

AND WHEREAS on August 7, 2019 the Hearing Panel conducted a hearing of the matters as described in the Notice of Hearing;

AND WHEREAS the Hearing Panel considered the evidence filed and submissions of the Respondent and Counsel for MFDA Staff at the hearing;

AND WHEREAS the Hearing Panel found that:

1. commencing in July 2015, the Respondent engaged in personal financial dealings by borrowing $7,000 from client DH, which gave rise to a conflict or potential conflict 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 Member’s policies and procedures, and MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1; and
2. in March 2016, the Respondent misled the Member by falsely denying that she had borrowed money from a client, thereby interfering with the ability of the Member to supervise the Respondent’s activities, failing to observe high standards and conduct in the transaction of business, and engaging in conduct that is unbecoming and detrimental to the public interest, contrary to MFDA Rules 2.1.1, 1.1.2 and 2.5.1.

IT IS HEREBY ORDERED THAT:

1. The Respondent shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA for a period of 18 months commencing from the date of this Order, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
2. The Respondent shall pay a fine to the MFDA in the amount of $7,500, pursuant to s. 24.1.1(b) of MFDA By-law No. 1 no later than August 7, 2021;
3. The Respondent shall pay costs to the MFDA in the amount of $5,000, pursuant to s. 24.2 of MFDA By-law No. 1 no later than August 7, 2021; 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.