Order

WHEREAS on April 15, 2020, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to ss. 20 and 24 of MFDA By-law No. 1 in respect of Steven Jules Rethy (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA dated October 15, 2020 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of MFDA By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that in or about June 2010, the Respondent concealed from the Member that he had recommended that two clients borrow monies to invest, thus failing to abide by the terms and conditions regarding leveraging imposed on his registration and misleading the Member in response to its supervisory inquiries, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:

1. The Respondent shall be suspended for a period of five months from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member commencing from the date of the final Order herein, pursuant to s. 24.1.1(c) of By-law No. 1;
2. The Respondent shall pay a fine in the amount of $10,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1, as follows:
   1. $5,000 shall be payable upon the acceptance of the Settlement Agreement; and
   2. the balance of the fine ($5,000) shall be payable by April 15, 2021;
3. The Respondent shall be permanently prohibited from engaging in any new leveraging activities with clients, including recommending or applying for additional investment loans for clients, pursuant to s. 24.1.1(f) of MFDA By-law No. 1; which prohibition does not otherwise limit the servicing of clients with existing leverage;
4. The Respondent shall pay costs in the amount of $5,000 upon the acceptance of the Settlement Agreement, pursuant to s. 24.2 of MFDA By-law No. 1;
5. The Respondent shall in future comply with MFDA Rule 2.1.1; and
6. 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.