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IN THE MATTER OF A DISCIPLINARY HEARING PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Frank Louis Surette

Order

(ARISING FROM PENALTY DECISION OF NOVEMBER 12, 2019)

WHEREAS on March 5, 2019, 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 Frank Louis Surette (the “Respondent”);

AND WHEREAS the Respondent did not file a Reply to the Notice of Hearing;

AND WHEREAS the first appearance in this hearing was held by teleconference before a Chair of a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) on May 14, 2019 in accordance with s. 19.13(b) of MFDA By-law No. 1;

AND WHEREAS no one appeared on behalf of the Respondent at the first appearance, although properly served with the Notice of Hearing as appears from the affidavit of service of Dwight Gordon dated April 3, 2019;

AND WHEREAS a second appearance in this hearing was held by teleconference before a Chair of the Hearing Panel on September 17, 2019 in accordance with s. 19.13(b) of MFDA By-law No. 1;

AND WHEREAS no one appeared on behalf of the Respondent at the second appearance, although properly notified of the second appearance by Staff and the Corporate Secretary’s Office as to the purpose, timing and location of the second appearance;

AND WHEREAS on November 5, 2019 the Hearing Panel conducted a Hearing on the Merits of the matters as described in the Notice of Hearing;

AND WHEREAS no one appeared on behalf of the Respondent at the Hearing on the Merits, although properly notified by Staff and the Corporate Secretary’s Office as to the purpose, timing and location of the Hearing on the Merits;

AND WHEREAS, at the Hearing on the Merits, the Hearing Panel considered the evidence presented by Staff through the Affidavit of Lara Rowles, sworn on November 1, 2019 and the exhibits attached thereto, and through a Bill of Costs filed by Staff;

AND WHEREAS, at the Hearing on the Merits, the Hearing Panel heard the submissions of Counsel for Staff with respect to the Respondent’s alleged misconduct;

AND WHEREAS on the basis of the evidence and submissions presented during the Hearing on the Merits, the Hearing Panel found that:

  1. commencing on July 11, 2017, the Respondent has failed to cooperate with an investigation into his activities conducted by Staff of the MFDA, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1(c)

IT IS HEREBY ORDERED THAT:

  1. From the date of this Order, the Respondent shall be permanently prohibited 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;
  2. The Respondent shall pay a fine in the amount of $50,000 pursuant to section 24.1.1(b) of MFDA By-law No. 1;
  3. The Respondent shall pay costs in the amount of $11,187.50, pursuant to s 24.2 of MFDA By-law No. 1; and
  4. 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.
  • J.L. McDougall
    J.L. McDougall
    Chair
  • Brigitte J. Geisler
    Brigitte J. Geisler
    Industry Representative
  • Kenneth P. Mann
    Kenneth P. Mann
    Industry Representative

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