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IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Kenneth Daniel Foster

Order

(ARISING FROM SETTLEMENT HEARING ON MARCH 26, 2020)

WHEREAS on December 10, 2019, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Kenneth Daniel Foster (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated December 10, 2019 (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 By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that:

  1. between September 2013 and June 2019, the Respondent obtained, possessed, and in some instances, used to process transactions, 96 pre-signed account forms in respect of 8 clients, contrary to MFDA Rule 2.1.1; and
  2. on or about September 29, 2017, the Respondent cut and pasted a client signature from an account form previously signed by the client, and maintained the account form in the client’s file, 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 pay a fine in the amount of $2,500 upon acceptance of the Settlement Agreement, pursuant to section 24.1.1(b) of MFDA By-law No. 1, in instalments as follows:
    1. $500.00 on or before April 30, 2020;
    2. $500.00 on or before May 29, 2020;
    3. $500.00 on or before June 30, 2020;
    4. $500.00, on or before July 31, 2020;
    5. $500.00 on or before August 31, 2020;
  2. The Respondent shall pay costs in the amount of $2,500 in certified funds, upon acceptance of the Settlement Agreement, pursuant to s. 24.2 of MFDA By-law No.1;
  3. The Respondent shall in the future comply with MFDA Rule 2.1.1; 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.
  • Thomas J. Lockwood
    Thomas J. Lockwood
    Chair
  • Ann C. Etter
    Ann C. Etter
    Industry Representative
  • Darrell Bing
    Darrell Bing
    Industry Representative

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