Order

WHEREAS on March 26, 2019, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to section 20 and 24 of By-law No. 1 in respect of Rakeshkumar Patel (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated [date] (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. On February 27, 2015, the Respondent, without client VB’s authorization, changed client VB’s address on the Member’s back office system from client VB’s residential address to the branch address at which the Respondent conducted business, contrary to the Member’s policies and procedures, and MFDA Rules 2.1.1, 2.10 and 1.1.2.
2. On April 14, 2015, the Respondent, in response to a supervisory query from the Member’s compliance staff regarding the suitability of a trade, changed client VB’s investment objectives on a Know-Your-Client (“KYC”) update form without client VB’s knowledge or authorization, and falsified client VB’s signature on the KYC update form, contrary to MFDA Rules 2.2.1 and 2.1.1.
3. On January 13, 2016, the Respondent misled the Member during the course of its supervisory investigation into his conduct, contrary to MFDA Rule 2.1.1.

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 agrees to the following terms of settlement:
   1. a two year prohibition on the authority of the Respondent to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member, pursuant to section 24.1.1(e) of MFDA By-law No. 1;
   2. The Respondent shall pay a fine in the amount of $5,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1 which shall be payable in instalments as follows:
      1. $500 payable on the date that this Settlement Agreement is accepted by a Hearing Panel;
      2. $500 on or before the last business day of the first month following the acceptance of the Settlement Agreement;
      3. $500 on or before the last business day of the second month following the acceptance of the Settlement Agreement;
      4. $500 on or before the last business day of the third month following the acceptance of the Settlement Agreement;
      5. $500 on or before the last business day of the fourth month following the acceptance of the Settlement Agreement;
      6. $500 on or before the last business day of the fifth month following the acceptance of the Settlement Agreement;
      7. $500 on or before the last business day of the sixth month following the acceptance of the Settlement Agreement;
      8. $500 on or before the last business day of the seventh month following the acceptance of the Settlement Agreement;
      9. $500 on or before the last business day of the eight month following the acceptance of the Settlement Agreement; and
      10. $500 on or before the last business day of the ninth month following the acceptance of the Settlement Agreement.
   3. The Respondent shall pay costs to the MFDA in the amount of $2,500, pursuant to s. 24.2 of MFDA By-law No. 1 on the date that this Settlement Agreement is accepted by a Hearing Panel.
   4. The Respondent shall in the future comply with MFDA Rules 2.1.1, 2.10, 2.2.1 and 1.1.2.
   5. The Respondent will attend in person, on the date set for the Settlement Hearing.