File No. 202101
IN THE MATTER OF A DISCIPLINARY HEARING
PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA
Re: Matthew Elliott de Haan
(ARISING FROM HEARING ON THE MERITS OF AUGUST 9-10, 2021)
WHEREAS on January 18, 2021, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA By-law No. 1 in respect of a disciplinary proceeding commenced against Matthew Elliott de Haan (the “Respondent”);
AND WHEREAS the Respondent delivered a Reply to the Notice of Hearing on February 23, 2021;
AND WHEREAS the first appearance in this matter was held before a hearing panel of the Pacific Regional Council of the MFDA (the “Hearing Panel”) on March 23, 2021;
AND WHEREAS the Respondent and Staff of the MFDA (“Staff”) entered into an Agreed Statement of Facts, dated August 8, 2021 (the “ASF”), in which the Respondent admitted to misconduct and facts that constitute misconduct for which the Respondent may be penalized on the exercise of the discretion of a hearing panel pursuant to s. 24.1 of the MFDA By-law No. 1;
AND WHEREAS on August 9-10, 2021, the Hearing Panel conducted a hearing on the issue of penalty, during which Staff and the Respondent presented the ASF and made submissions to the Hearing Panel with respect to the appropriate penalty to be imposed on the Respondent and with the permission of the Hearing Panel and the consent of Staff, the Respondent provided some additional testimony to supplement the ASF;
AND WHEREAS on the basis of the facts and contraventions admitted by the Respondent in the ASF, the additional testimony provided by the Respondent during the hearing, and the submissions made by Staff and the Respondent during the hearing, the Hearing Panel is of the opinion that:
- Between on or about October 29, 2018 and December 3, 2018, the Respondent solicited a client and other individuals to invest in an investment that was not approved for sale by the Member, thereby engaging in securities related business that was not carried on for the account of the Member or through the facilities of the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1, 1.1.2, 2.1.1, and 2.5.1.
- Between on or about October 29, 2018 and December 3, 2018, the Respondent engaged in an unapproved outside activity when he, acting on behalf of a third party company, solicited a client and other individuals to invest in an investment that was not approved for sale by the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 1.3.2, 2.1.1, and 2.5.1.
- On or about December 7, 2018, the Respondent provided a false or misleading statement to the Member during the course of an investigation by the Member, contrary to MFDA Rule 2.1.1.
IT IS HEREBY ORDERED THAT:
- The Respondent is prohibited from conducting securities related business while in the employ of, or in association with, any Member of the MFDA for a period of five (5) years from the date of this Order, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
- The Respondent shall pay a fine in the amount of $15,000, pursuant to section 24.1.1(b) of By-law No. 1; and
DATED: Aug 10, 2021
"Joseph A. Bernardo"
Joseph A. Bernardo