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File No. 201833

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: Kathleen Louise Caswell

Order

(ARISING FROM SETTLEMENT HEARING ON JULY 26, 2018)

WHEREAS on February 27, 2018, the Mutual Fund Dealers Association of Canada (“MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Kathleen Louise Caswell (“Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated February 26, 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:

  1. between 2010 and September 2016, the Respondent obtained, possessed, and in 9 instances, used to process transactions, 37 pre-signed account forms in respect of 27 clients, contrary to MFDA Rule 2.1.1; and
  2. between May 2010 and December 2015, the Respondent falsified, and in 8 instances, used to process transactions, 12 account forms in respect of 10 clients 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 be prohibited for two months from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, pursuant to s. 24.1.1.(e) of MFDA By-law No. 1;
  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;
  1. The Respondent shall pay costs in the amount of $2,500, pursuant to s. 24.2 of MFDA By-law No. 1;
  1. The payment by the Respondent of the fine and costs shall be made to and received by MFDA Staff in certified funds as follows:
    1. $1,000 shall be paid upon acceptance of the Settlement Agreement by the Hearing Panel;
    2. $400 on or before August 31, 2018;
    3. $400 on or before September 28, 2018;
    4. $400 on or before October 31, 2018;
    5. $400 on or before November 30, 2018;
    6. $400 on or before December 31, 2018;
    7. $400 on or before January 31, 2019;
    8. $400 on or before February 28, 2019;
    9. $400 on or before March 29, 2019;
    10. $400 on or before April 30, 2019; and
    11. $400 on or before May 31, 2019;
  1. If the Respondent fails to make any of the payments described above in paragraph 4 then:
    1. any outstanding balance of the fine and costs owed by the Respondent shall immediately become due and payable to the MFDA; and
    2. the Respondent shall continue to be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the fine and costs owed by the Respondent is paid to the MFDA, pursuant to s. 24.3.13(c) of MFDA By-law No. 1;
  1. The Respondent shall in the future comply with MFDA Rule 2.1.1; and
  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.

DATED: Jul 26, 2018

"Paul M. Moore, QC"

Paul M. Moore, QC

Chair


"Edward V. Jackson"

Edward V. Jackson

Industry Representative


"Guenther W. K. Kleberg"

Guenther W. K. Kleberg

Industry Representative


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