File No. 201565
IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA
Re: International Capital Management Inc.
(ARISING FROM SETTLEMENT HEARING ON DECEMBER 16, 2016)
WHEREAS on December 17, 2015, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to section 24.4 of By-law No. 1 in respect of International Capital Management Inc. (“Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA dated December 15, 2016, in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to sections 20 and 24.1 of MFDA By-law No. 1 (“Settlement Agreement”);
AND WHEREAS a settlement hearing was conducted in Toronto, Ontario on December 16, 2016, with counsel for the Respondent and a representative of the Respondent in attendance, and on hearing the submissions of counsel for the Respondent and counsel for Staff of the MFDA;
AND WHEREAS the Hearing Panel is of the opinion that the Respondent, between June 2012 and September 2013, while the Respondent was designated in Early Warning, contravened the early warning requirements set out in MFDA Rule 3.4.2 by making payments without prior written approval from the MFDA for:
- salary and override payments to Officers of the Respondent from June 2012 to August 2013;
- payments to I-Boss from June 2012 to December 2012; and
- a payment to HoldCo in March 2013
contrary to MFDA Rule 3.4.2(b)(iv)(C);
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- the Respondent shall pay a fine in the amount of $30,000, pursuant to pursuant to section 24.1.2(b) of MFDA By-law No. 1;
- the Respondent shall pay costs in the amount of $5,000, pursuant to section 24.2 of MFDA By-law No. 1;
- the payment by the Respondent of the fine and costs as set out in paragraphs (1) and (2) above shall be made to and received by MFDA Staff in certified funds or lawyers cheques as follows:
- payment in the amount of $10,000 (attributable to the fine) on the date the hearing panel accepts the Settlement Agreement;
- payment in the amount of $5,000 (attributable to the costs) on the date the hearing panel accepts the Settlement Agreement;
- payment in the amount of $10,000 (attributable to the fine) 30 days after the date the hearing panel accepts the Settlement Agreement; and
- payment in the amount of $10,000 (attributable to the fine) 60 days after the date the hearing panel accepts the Settlement Agreement;
- the Respondent shall in the future comply with MFDA Rule 3.4.2; and
DATED: Dec 16, 2016
"John Lorn McDougall"
John Lorn McDougall
"Guenther W. K. Kleberg"
Guenther W. K. Kleberg
"Kenneth P. Mann"
Kenneth P. Mann