Order

WHEREAS on February 22, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of By-law No. 1 in respect of a disciplinary proceeding commenced against Raymond Louis Blais (the “Respondent”);

AND WHEREAS the Respondent was served with the Notice of Hearing by way of personal service on April 5, 2018;

AND WHEREAS scheduling appearances in this proceeding were held before a one public representative of a Regional Council acting as Chair on behalf of a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on April 25, 2018, May 9, 2018, June 5, 2018 and June 11, 2018;

AND WHEREAS following the scheduling appearances, the hearing on the merits in this matter was scheduled to be heard before the Hearing Panel on November 5, 2018;

AND WHEREAS the Respondent entered into an agreed statement of facts with Staff of the MFDA dated October 31, 2017 (the “Agreed Statement of Facts”), in which:

1. the Respondent admitted to facts and a contravention of MFDA Rules for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1 (the “Admissions”);
2. the Respondent and Staff of the MFDA agreed that, in light of the Respondent’s Admissions, the Respondent ought to be permanently prohibited from acting as a mutual fund salesperson, pursuant to section 24.1(e) of By-law No. 1; and
3. the Respondent and Staff of the MFDA did not agree on the totality of fines and costs to be imposed on the Respondent in this case, if any;

AND WHEREAS the hearing on the merits was held before the Hearing Panel on November 5, 2018 during which time the Hearing Panel considered the Agreed Statement of Facts and submissions made by counsel for the Respondent and Staff of the MFDA with respect to the quantum of fines and costs, if any, to be imposed on the Respondent;

AND WHEREAS the Hearing Panel is of the opinion that between at least 2003 and November 3, 2015, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Members he was registered with, by:

1. arranging for at least 120 investors, including 81 clients, to open online discount brokerage accounts outside the Members; and/or
2. proposing trades, processing trades or otherwise conducting acts in furtherance of trades with respect to securities for the accounts;

contrary to MFDA Rules 1.1.1 and 2.1.1, and the terms of his registration in the securities industry;

IT IS HEREBY ORDERED THAT:

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 is permanently prohibited from acting as a mutual fund salesperson, pursuant to section 24.1(e) of By-law No. 1;
3. The Respondent shall pay a fine in the amount of $50,000 pursuant to s. 24. 1.1(b) of MFDA By-law No. 1; and
4. The Respondent shall pay costs of this proceeding in the amount of $4,500 pursuant to s. 24.2 of MFDA By-law No. 1.