WHEREAS on February 28, 2017, 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, among others, Hammond Lieu (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated May 10, 2018 (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 a settlement hearing to consider the Settlement Agreement was held before a hearing panel of the Central Regional Council (the “Hearing Panel”) on May 16, 2018;
AND WHEREAS on November 27, 2018 the Hearing Panel issued its Decision and Reasons wherein it accepted the Settlement Agreement as appropriate and in the public interest;
AND WHEREAS the Hearing Panel is of the opinion that the Respondent:
- between at least October 21, 2009 and August 21, 2014, falsified, fabricated or altered clients’ KYC information on account forms submitted to the Member, and information on loan applications and client documents submitted to lenders, in order to facilitate and obtain investment loans to purchase mutual funds for clients which loans the clients did not otherwise qualify for, thereby failing to observe the high standards of ethics and conduct in the transaction of business, and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1;
- between at least October 21, 2009 and August 21, 2014, failed to ensure that at least 4 investment loans recommended to clients were suitable for the clients and in keeping with the clients’ investment objectives, having regard to the clients’ relevant “Know-Your-Client” information and financial circumstances, contrary to the Member’s policies and procedures, and MFDA Rules 2.2.1 and 2.1.1; and
- commencing December 2013, engaged in conduct unbecoming an Approved Person by providing false and misleading responses to the Member during the course of the Member’s investigation into his conduct, contrary to MFDA Rule 2.1.1.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- The Respondent is permanently prohibited from acting as a mutual fund salesperson, pursuant to section 24.1(e) of By-law No. 1.
Paul M. MoorePaul M. MooreChair
Guenther W. K. KlebergGuenther W. K. KlebergIndustry Representative
Joseph YassiJoseph YassiIndustry Representative