Order

WHEREAS on May 11, 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 Ping-Chung Peter Chiu (“Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated May 10, 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. on or about December 16, 2015, the Respondent changed a client’s banking information based upon email instructions received from a third party who, without the Respondent’s knowledge, had gained unlawful access to the client’s email, without first obtaining a signed account form from the client authorizing the change, contrary to the Member’s policies and procedures and MFDA Rules 2.2.4, 1.2, 2.5.1, and 2.1.1;
2. on December 31, 2015 and January 18, 2016, the Respondent processed two redemptions in a client account based upon email instructions received from a third party who, without the Respondent’s knowledge, had gained unlawful access to the client’s email, without taking adequate steps to verify that he was communicating with the client as required by the Member’s policies and procedures, contrary to MFDA Rules 2.5.1, 1.1.2 and 2.1.1; and
3. on January 18, 2016, the Respondent processed a redemption in a client account without obtaining instructions in respect of which mutual funds to redeem and in what amounts, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1, 2.5.1, 1.1.2, 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 $12,500 pursuant to s. 24.1.1.(b) of MFDA By-law No. 1;

2. the Respondent shall be suspended for a period of 3 months from acting in the capacity of branch manager pursuant to s. 24.1.1(c) of MFDA By-law No. 1;

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 in the future comply with MFDA Rules 2.3.1, 2.2.4, 2.5.1, 1.1.2 and 2.1.1; and

5. 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.