File No. 201804
IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA
Re: Ismail Cassim
(ARISING FROM SETTLEMENT HEARING ON FEBRUARY 5, 2019)
WHEREAS on August 21, 2018, 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 Ismail Cassim (the “Respondent”);
AND WHEREAS in accordance with s. 19.13 of MFDA By-Law No. 1, the first appearance in this proceeding was held by teleconference before a public representative of the Central Regional Council of the MFDA (the “Chair of the Hearing Panel”) on October 9, 2018;
AND WHEREAS during that first appearance Staff and counsel for the Respondent made submissions to the Chair of the Hearing Panel with respect to scheduling and other procedural matters following which the hearing on the merits in this matter was scheduled to be held in the hearing room located at the offices of the MFDA at 121 King Street West, Suite 1000, Toronto, Ontario from February 4 to 6, 2019 at 10:00 a.m.;
AND WHEREAS on October 31, 2018 the Respondent delivered a Reply to the Notice of Hearing;
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated January 29, 2019 (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 on February 1, 2019 the MFDA issued a news release announcing that a settlement hearing would be held at a later date before a hearing panel of the Central Regional Council (the “Hearing Panel”) to consider the Settlement Agreement (the “Settlement Hearing”), pursuant to section 24.4 of By-law No. 1;
AND WHEREAS the Settlement Hearing was held on February 5, 2019 during which time the Hearing Panel considered the Settlement Agreement and submissions of Staff and counsel for the Respondent;
AND WHEREAS the Hearing Panel is of the opinion that:
- between 2012 and January 15, 2015, the Respondent collected, maintained or used at least 123 blank pre-signed and photocopied client account forms in respect of 28 clients, contrary to the Member’s policies and procedures, and MFDA Rule 2.1.1;
- between December 2011 and September 2014, the Respondent processed at least 166 trades in 22 client accounts without recording or maintaining adequate evidence of any trade instructions provided by clients, contrary to the Member’s policies and procedures, and MFDA Rules 5.1(b), 2.5, 1.1.2, and 2.1.1; and
- on July 24, 2012, the Respondent misled MFDA Staff during the course of its sales compliance examination of the Respondent’s branch, contrary to MFDA Rule 2.1.1.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- commencing on the date of this Order, the Respondent is be prohibited from being registered as a dealing representative with a Member of the MFDA for a period of 1 year, pursuant to section 24.1.1(e) of MFDA By-law No.1;
- the Respondent shall pay a fine in the amount of $15,000 (the “Fine”), pursuant to section 24.1.1(b) of By-law No. 1;
- the Respondent shall pay the costs of this proceeding and the MFDA’s investigation in this matter in the amount of $5,000 (the “Costs”), pursuant to section 24.2 of By-law No. 1; and
- The Fine and Costs are to paid by the Respondent as follows:
- On the date of this order, an initial payment to the MFDA in the amount $5,000; and
- Six additional, and consecutive, monthly installment payments to the MFDA, paid as follows until the Fine and Costs are paid in full:
- On or before March 4, 2019, a payment in the amount of $2,500;
- On or before April 4, 2019, a payment in the amount of $2,500;
- On or before May 4, 2019, a payment in the amount of $2,500;
- On or before June 4, 2019, a payment in the amount of $2,500;
- On or before July 4, 2019, a payment in the amount of $2,500; and
- On or before August 4, 2019, a payment in the amount of $2,500.
DATED: Feb 5, 2019
"Martin L. Friedland"
Martin L. Friedland
"Brigitte J. Geisler"
Brigitte J. Geisler