Order

WHEREAS on March 17, 2021, 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 Lucillia Sok Cheng Tan (the “Respondent”);

AND WHEREAS, on May 21, 2021, the first appearance in this hearing was held before a public representative (the “Chair”) of the Pacific Regional Council of the MFDA (the “Hearing Panel”) in accordance with s. 19.13(b) of MFDA By-law No. 1, at which first appearance no one appeared on behalf of the Respondent;

AND WHEREAS, on July 23, 2021, an appearance was held by videoconference before the Chair of the Hearing Panel, in accordance with section 19.13(b) of MFDA By-law No. 1, at which appearance no one appeared on behalf of the Respondent;

AND WHEREAS, at the July 23, 2021 appearance, the Chair of the Hearing Panel issued an Order (the “Order”) which, inter alia, (i) found that the Respondent had been appropriately served with the Notice of Hearing in accordance with Rule 4.2(1)(b) of the MFDA Rules of Procedure, and (ii) scheduled the date for the hearing of this matter on its merits for October 4, 2021;

AND WHEREAS, on October 4, 2021, the hearing of this matter on the merits proceeded as scheduled before the Hearing Panel, at which time no one appeared on behalf of the Respondent, although provided with proper notice of the hearing on the merits by the MFDA pursuant to the Order;

AND WHEREAS, at the hearing of this matter on the merits, the Hearing Panel considered the evidence and submissions presented by Staff with respect to the alleged misconduct, including but not limited to the Affidavit of Indira Nadarajan with exhibits attached thereto, sworn September 30, 2021, and the testimony of Indira Nadarajan, appearing via videoconference;

AND WHEREAS on the basis of the evidence and submissions presented during the hearing of this matter on the merits, in the opinion of the Hearing Panel:

1. between approximately August 22, 2012 and April 24, 2019, the Respondent engaged in outside business activities with respect to one or more real estate investment businesses which were not disclosed to or approved by the Member, contrary to the Member’s policies and procedures, and MFDA Rules 1.2.1(c) (now MFDA Rule 1.3)[1], 2.5.1, 1.1.2, and 2.1.1;
2. between approximately 2013 and April 24, 2020, the Respondent failed to disclose to the Member a conflict or potential conflict of interest that arose when clients of the Member invested with a real estate business owned or operated by the Respondent and her family, thereby failing to ensure that the conflict or potential conflict of interest was disclosed to the Member and addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1; and
3. commencing on approximately April 22, 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into her conduct, contrary to section 22.1 of MFDA By-law No. 1.

IT IS HEREBY ORDERED THAT:

1. The Respondent has been appropriately notified of the date and time set for the hearing of this matter pursuant to the Order;
2. 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;
3. The Respondent shall pay a fine in the amount of $125,000, pursuant to section 24.1.1(b) of MFDA By-law No. 1;
4. The Respondent shall pay costs in the amount of $10,000, pursuant to s 24.2 of MFDA By-law No. 1; and
5. 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.