Order

WHEREAS on July 4, 2017, the Mutual Fund Dealers Association of Canada (“MFDA”) issued a Notice of Hearing pursuant to section 24.4 of By-law No. 1 in respect of David Graham Lillie (“Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated August 22, 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 November 5, 2014, the Respondent arranged for 3 clients to complete 5 new account application forms in order to facilitate the transfer of the client accounts to a new Member, prior to being registered with the new Member, thereby engaging in registerable activity and securities related business on behalf of a Member that the Respondent was not registered with, contrary to MFDA Rules 1.1.1, 1.1.2 and 2.1.1;
2. between November 5, 2014 and February 2016, the Respondent, obtained, possessed, and in some instances, used to process transactions, 26 pre-signed account forms in respect of 18 clients, contrary to MFDA Rule 2.1.1; and
3. on December 5, 2014 and February 10, 2015, the Respondent falsified 2 account forms and used them to process a transaction, by altering information on the account 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 $30,000 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;

3. the Respondent shall successfully complete the Conduct and Practices Handbook course offered by the Canadian Securities Institute within 6 months of the date of the acceptance of the Settlement Agreement by the Hearing Panel, pursuant to s. 24.1.1(f) of MFDA By-law No. 1;

4. the Respondent shall in the future comply with MFDA Rules 1.1, 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.