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 MFDA By-law No. 1 in respect of a disciplinary proceeding commenced against Wayne Brian Charlton (the “Respondent”);

AND WHEREAS, in accordance with section 19.13(b) of MFDA By-law No. 1, the first appearance in this proceeding was held by videoconference on July 20, 2021 before a public representative of a Regional Council acting on behalf of the Central Regional Council of the MFDA (the “Hearing Panel”);

AND WHEREAS Counsel for Staff of the MFDA (“Staff”) and the Respondent attended the first appearance by videoconference on July 20, 2021 and made submissions to the Chair of the Hearing Panel with respect to scheduling and other procedural matters;

AND WHEREAS on September 17, 2021, the Respondent entered into an agreed statement of facts with Staff (the “Agreed Statement of Facts”) in which:

1. the Respondent admitted to facts and contraventions of MFDA Rules for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1 (the “Admissions”); and
2. the Respondent and Staff of the MFDA did not agree on the penalty that ought to be ordered against the Respondent in this case, if any;

AND WHEREAS on November 17, 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 Agreed Statement of Facts and submissions made by the Respondent and Staff with respect to the appropriate penalty, if any, to be imposed on the Respondent;

AND WHEREAS on December 13, 2021, the Hearing Panel issued its Decision (Penalty) and Reasons and found that:

1. Between October 3, 2017 and November 26, 2018, the Respondent engaged in discretionary trading when he processed 7 redemptions for 3 clients without obtaining instructions from the clients with respect to the mutual funds to be redeemed in the clients’ accounts, contrary to MFDA Rules 2.3.1(b) and 2.1.1; and
2. Between October 3, 2017 and November 26, 2018, the Respondent failed to record and maintain evidence of client trade instructions with respect to 4 redemptions in 4 client accounts, contrary to the Member’s policies and procedures and MFDA Rule 1.1.2, 2.5.1 and 5.1(b);

IT IS HEREBY ORDERED THAT:

1. The Respondent shall pay a fine in the amount of $10,000 in certified funds payable upon the date of this Order, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;
2. The Respondent shall pay costs in the amount of $2,500 in certified funds payable upon the date of this Order, pursuant to s. 24.2 of MFDA By-law No. 1; and
3. 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.