Order

WHEREAS on November 6, 2020, 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 Libin Shen (the “Respondent”);

AND WHEREAS the first appearance in this hearing was held by videoconference before a Chair of a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on January 14, 2021 in accordance with s. 19.13(b) of MFDA By-law No. 1;

AND WHEREAS Counsel for Staff of the MFDA and the Respondent attended the first appearance by videoconference on January 14, 2021, to address scheduling and other procedural matters and jointly proposed a schedule for the continuation of the proceeding;

AND WHEREAS on July 6, 2021, the hearing of this matter was held by videoconference before a hearing panel of the Central Regional Council (the “Hearing Panel”);

AND WHEREAS the Hearing Panel considered the evidence filed and submissions of the Respondent on misconduct and penalty as well as the submissions of Counsel for Staff of the MFDA on misconduct and penalty at the hearing;

AND WHEREAS on the basis of the evidence and submissions presented during the hearing, the Hearing Panel found that:

1. between January 2017 and May 2018, the Respondent opened and processed trades in fictitious mutual fund client accounts which made him eligible to receive promotional monies that were payable to new banking clients, thereby failing to observe high standards of ethics and conduct in the transaction of business or engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1; and
2. commencing in August 2019, the Respondent failed to cooperate with an investigation into his activities conducted by Staff of the MFDA, 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 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 $35,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1, payable as follows:
   1. $5,000 payable as of the date of this Order; and
   2. monthly installments, without interest, of $1,250 for a period of two years commencing on August 1, 2021;
3. The Respondent shall pay costs in the amount of $5,000, 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.