File No. 2018101
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: Yvonne Yat Sim Chan
(ARISING FROM SETTLEMENT HEARING ON MAY 7, 2019)
WHEREAS on December 18, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to s. 24.4 of MFDA By-law No. 1 in respect of Yvonne Yat Sim Chan (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated December 18, 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 MFDA By-law No. 1;
AND WHEREAS the Hearing Panel is of the opinion that the Respondent, in September 2016 and February 2017, in her capacity as Branch Manager, failed to identify regulatory concerns and take adequate supervisory action in response to information which indicated that an Approved Person for whom she had supervisory oversight, had required two clients to sign unauthorized documents purporting to waive the suitability requirement, contrary to MFDA Rule 2.5.5(f), Rule 2.1.1, and MFDA Policy No. 2;
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- the Respondent shall be prohibited from acting as a Branch Manager or acting in any other MFDA related supervisory capacity while in the employ of or associated with any MFDA Member for a period of six months commencing from the date of the final Order herein, pursuant to s. 24.1.1(e) of By-law No. 1;
- the Respondent shall pay a fine in the amount of $2,500, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;
- the Respondent shall pay costs in the amount of $1,500, pursuant to s. 24.2 of MFDA By-law No. 1;
- the Respondent shall in the future comply with MFDA 2.5.5(f), Rule 2.1.1, and MFDA Policy No. 2.
DATED: May 7, 2019
"Frederick H. Webber"
Frederick H. Webber
"Guenther W. K. Kleberg"
Guenther W. K. Kleberg