Order

WHEREAS on June 17, 2016, 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 Claude Armand Vaillancourt (the “Respondent”); 

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated September 2, 2016 (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 By-law No. 1; 

AND WHEREAS the Hearing Panel is of the opinion that: 

1. between January 2009 and February 2015, the Respondent obtained, possessed, and used to process trades, 76 pre-signed account forms in respect of 14 clients; and
2. between January 2009 and February 2015, the Respondent, acting in the capacity as alternate branch manager, reviewed and approved the use of 36 pre-signed account forms, contrary to MFDA Rules 2.5.5(f)[1] and 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 $11,500 pursuant to s. 24.1.1(b) of MFDA By-law No.1 (the “Fine”);
2. the Fine shall be payable in 12 installments in the amount of $958.33 each, which are due on or before the final business day of the 12 months that follow the date of the acceptance of the settlement agreement by the Hearing Panel; 
3. the Respondent shall pay costs in the amount of $2,500 pursuant to s. 24.2 of MFDA By-law No.1; 
4. the Respondent shall be prohibited from conducting securities related business in the capacity of branch manager or any other supervisory capacity for a period of 12 months for a Member of the MFDA pursuant to s. 24.1.1(e) of MFDA By-law No.1; 
5. the Respondent shall successfully complete the branch manager course offered by the Canadian Securities Institute before seeking re-designation as a branch manager, pursuant to s. 24.1.1(f) of MFDA By-law no.1; and
6. 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] Rule 2.5.5(f) has been re-numbered and re-worded during the period of the Respondent’s conduct described in this Settlement Agreement. Prior to September 2013, the Respondent’s conduct was contrary to MFDA Rule 2.5.5(d), and prior to December 2010, the Respondent’s conduct was contrary to MFDA Rule 2.5.3(b).