File No. 201838
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: Gordon David Brock
(ARISING FROM SETTLEMENT HEARING ON APRIL 16, 2018)
WHEREAS on March 12, 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 Gordon Brock (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated March 12, 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 July 28, 2011 and August 5, 2016, obtained, possessed, and in some instances, used to process transactions, 87 pre-signed account forms in relation to 32 clients, contrary to MFDA Rule 2.1.1;
- on or about January 20, 2016, he processed 4 trades in relation to 3 clients based on the instructions of someone other than the client, contrary to MFDA Rule 2.1.1.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- the Respondent shall pay a fine in the amount of $17,500 pursuant to section 24.1.1(b) of By-law No. 1;
- the Respondent shall pay costs in the amount of $2,500 pursuant to section 24.2 of By-law No. 1 upon acceptance of this Settlement Agreement;
- the payment by the Respondent of the fine and costs described above in paragraphs 1 and 2 shall be made to and received by MFDA Staff in certified funds as follows:
- $2,500 (costs) shall be paid upon acceptance of the Settlement Agreement by the Hearing Panel;
- $2,916.67 (fine) on or before May 25, 2018;
- $2,916.67 (fine) on or before June 29, 2018;
- $2,916.67 (fine) on or before July 27, 2018;
- $2,916.67 (fine) on or before August 31, 2018;
- $2,916.67 (fine) on or before September 28, 2018;
- $2,916.67 (fine) on or before October 26, 2018;
- if the Respondent fails to make any of the payments described above in paragraph 3 then:
- any outstanding balance of the fine and costs owed by the Respondent shall immediately become due and payable to the MFDA; and
- 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 section 24.3.13(c) of MFDA By-law No. 1;
- the Respondent shall in the future comply with MFDA Rules 2.3.1 and 2.1.1; and
DATED: Apr 16, 2018
"Frederick W. Chenoweth"
Frederick W. Chenoweth
"Guenther W. K. Kleberg"
Guenther W. K. Kleberg
"Linda J. Anderson"
Linda J. Anderson