MFDA Order

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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

Order

(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:

  1. 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;
  2. 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;
  3. 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;
  4. the Respondent shall pay costs in the amount of $1,500, pursuant to s. 24.2 of MFDA By-law No. 1;
  5. 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

Chair


"Guenther W. K. Kleberg"

Guenther W. K. Kleberg

Industry Representative


"Selwyn Kossuth"

Selwyn Kossuth

Industry Representative


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