WHEREAS on September 16, 2019, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a News Release announcing that it proposes to hold a hearing to consider whether, pursuant to section 24.4 of By-law No. 1, a hearing panel of the Central Regional Council (the “Hearing Panel”) of MFDA should accept the settlement agreement entered into between Staff of the MFDA (“Staff”) and the Respondent, Israel (Steve) Notis (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated October 4, 2019 (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 November 2016 and March 2017, engaged in personal financial dealings with a client of the Member by obtaining funds from the client to invest in a condominium property jointly with the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, and 1.1.2 and 2.5.1;
- between June 2015 and June 2017, had and continued in an outside activity by serving on the board of directors of a gold exploration corporation that was not disclosed to and approved by the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(c) (now 1.3.2), 2.1.1, and 2.5.1 and 1.1.2;
- between at least 2014 and 2017, obtained, possessed and, in some instances, used to process transactions, 62 pre-signed account forms, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1 and 1.1.2 and 2.5.1;
- between July 2014 and March 2017, falsely indicated on the Member’s Annual Consultant Certificate that he: (i) did not possess and use pre-signed forms; (ii) was not engaged in any outside activities; and (iii) had reviewed and was compliant with the Member’s policies and procedures, contrary to MFDA Rule 2.1.1; and
- between May 2017 and June 2017, misled the Member during the course of an 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:
- The Respondent shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of 4 years from the date the Settlement Agreement is accepted, pursuant to section 24.1.1(e) of MFDA By-law No. 1.
- The Respondent shall pay a fine in the amount of $35,000, pursuant to section 24.1.1(b) of MFDA By-law No. 1, in instalments as follows:
- $10,000 in certified funds upon acceptance of the Settlement Agreement;
- $5,000 in certified funds on or before November 29, 2019;
- $5,000 in certified funds on or before December 31, 2019;
- $5,000 in certified funds on or before January 31, 2020;
- $5,000 in certified funds on or before February 28, 2020; and
- $5,000 in certified funds on or before March 31, 2020.
- The Respondent shall pay costs in the amount of $5,000 in certified funds upon acceptance of the Settlement Agreement, pursuant to section 24.2 of MFDA By-law No. 1.
- The Respondent shall in the future comply with MFDA Rules 1.3.2, 2.1.1, 2.1.4, and 1.1.2 and 2.5.1.
Emily ColeEmily ColeChair
Joe YassiJoe YassiIndustry Representative
Guenther KlebergGuenther KlebergIndustry Representative