Order

WHEREAS on April 13, 2017, the Mutual Fund Dealers Association of Canada (“MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Stephen Pilkey (“Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated April 24, 2017 (“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 about April 2013 and July 2015 the Respondent opened and maintained a bank account in his corporation’s name in trust for a client, and with the client’s authorization accepted payments from the client’s employer into the bank account which the Respondent paid to third parties on behalf of the client or invested in the client’s mutual fund account with the Member, thereby engaging in conduct giving rise to a conflict or potential conflict of interest that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.5.1, 1.1.2 and 2.1.1;
2. between December 2011 and November 2014, the Respondent obtained, possessed and, in some instances, used to process transactions, 15 pre-signed account forms in respect of 8 clients, contrary to MFDA Rule 2.1.1; and
3. between July 25, 2007 and June 24, 2015, the Respondent falsified 2 account forms in respect of 2 clients by altering information on the forms without having the clients initial the alterations, contrary to MFDA 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 in the amount of $13,500 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 pursuant to s. 24.2 of MFDA By-law No. 1; and
3. The Respondent shall in the future comply with MFDA Rules 2.1.4, 2.5.1, 1.1.2 and 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.