WHEREAS on December 18, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Natascha Nadine Stutz (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 By-law No. 1;
AND WHEREAS the Hearing Panel is of the opinion that the Respondent:
- between August 11, 2011 and December 3, 2014, submitted to the Member for processing, eleven (11) redemptions from the registered accounts of two (2) clients based on instructions from third parties who did not have trading authorization on the accounts, without confirming those instructions with the clients, thereby engaging in unauthorized trading, contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 2.3.1(a), 2.10, and 1.1.2.
- between May 20, 2011 and December 3, 2014, created and submitted to the Member for processing, thirty-one (31) trading forms, which indicated that the Respondent had confirmed instructions by telephone when such confirmations had not been made, thereby contravening the Member’s policies and procedures, contrary to MFDA Rules 2.1.1. 2.5.1, and 1.1.2.
- between May 20, 2011 and December 3, 2014, failed to keep adequate and accurate documentation and notes of investment instructions that the Respondent received, contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 5.1(b), 2.5.1, 2.10, and 1.1.2.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- The Respondent will be prohibited from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of 6 months from the date the Settlement Agreement is accepted by the Hearing Panel, pursuant to section 24.1.1(c) of MFDA By-law No. 1;
- The Respondent will pay a fine in the amount of $15,000 in certified funds upon the acceptance of the Settlement Agreement, pursuant to section 24.1.1(b) of MFDA By-law No. 1;
- The Respondent will pay costs in the amount of $5,000 in certified funds upon the acceptance of the Settlement Agreement, pursuant to section 24.2 of MFDA By-law No. 1;
- The Respondent will in the future comply with MFDA Rules 2.1.1, 2.3.1(a), 5.1(b), 2.5.1, 2.10, and 1.1.2; and
Malliha WilsonMalliha WilsonChair
Edward V. JacksonEdward V. JacksonIndustry Representative
Kenneth P. MannKenneth P. MannIndustry Representative