Order

WHEREAS on October 11, 2016, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to s. 24.4 of By-law No. 1 in respect of IPC Investment Corporation (the “Respondent”); 

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated December 9, 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 the Respondent: 

1. from about May 10, 2013 to September 23, 2013, failed to report Approved Person Mushaluk’s suspected prohibited trading activities on the MFDA METS reporting system and failed to conduct a timely supervisory investigation of those activities, contrary to MFDA Rule 2.5.1, Rule 2.1.1, and the reporting requirements set out under MFDA Policy No. 6;
2. from about 2010 to April 2014, failed to adequately supervise Approved Person JEC’s investment recommendations to clients, which resulted in the clients holding investments concentrated in gold-related sector funds, thus failing to ensure that each order accepted or recommendation made for any account of clients were suitable for the client based on the essential facts relative to the client and any investments within the account, contrary to MFDA Rule 2.2.1;
3. from in or about 2010 to April 2014, failed to adequately supervise concentration risk in the accounts of some of Approved Person JEC’s clients contrary to MFDA Rule 2.2.1;
4. from about August 2012 to January 2014, failed to take appropriate supervisory action regarding Approved Person JEC’s non-compliance with Member directives, thus failing to ensure the handling of its business was in accordance with MFDA By-laws, Rules and Policies and with applicable securities legislation, contrary to MFDA Rule 2.5.1 and Rule 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 of $100,000 pursuant to section 24.1.2(b) of MFDA By-law No. 1; 
2. the Respondent shall pay costs of $15,000 pursuant to section 24.2 of MFDA By-law No. 1; 
3. the Respondent shall in the future comply with MFDA Rule 2.5.1 and Rule 2.1.1; and
4. 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.