Order

WHEREAS on July 13, 2022, the Mutual Fund Dealers Association of Canada (the “MFDA”) provided notice to the public of a Settlement Hearing in respect of Sergio Salina (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated July 12, 2022 (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 based upon the admissions of the Respondent, the Hearing Panel is of the opinion that the Respondent:

1. in July 2014, recommended for the account of a 95 year old client a switch of approximately $498,511 from a no-load mutual fund to the same mutual fund which was subject to a seven year deferred sales charge schedule, generating a commission for the Respondent to which he would not otherwise have been entitled, thereby giving rise to a conflict or potential conflict of interest that the Respondent did not address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4,[1]1.1, 1.1.2, and 2.5.1;
2. between March 2016 and November 2016, failed to disclose to the Member that he had been named a beneficiary in a deceased client’s will, thereby failing to disclose a conflict or potential conflict of interest to the Member, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 1.1.2, and 2.5.1; and
3. between 2010 and 2018, obtained and possessed 24 pre-signed account forms in respect of 13 clients, contrary to the Member’s policies and procedures and 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 $30,000 in certified funds on the date of this Order, pursuant to section 24.1.1(b) of MFDA By-law No. 1.
2. The Respondent shall pay costs in the amount of $5,000 in certified funds on the date of this Order, pursuant to section 24.2 of MFDA By-law No. 1.
3. The Respondent shall in the future comply with MFDA Rules 2.1.4, 2.1.1, 1.1.2, and 2.5.1.
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.

[1] On June 30, 2021, MFDA Rule 2.1.4 was amended to conform with client focused reform amendments to National Instrument 31-103 that came into effect on the same day.  As the conduct addressed in this disciplinary proceeding pre-dated the amendment to this Rule, all contraventions addressed in this proceeding that make reference to that Rule concern the version of the Rule that was in effect between February 27, 2006 and June 30, 2021.