File No. 202029
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: Frank Siu-Cheong Pa
(ARISING FROM SETTLEMENT HEARING ON JUNE 25, 2020)
WHEREAS on June 3, 2020, 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 Frank Siu-Cheong Pa (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated June 22, 2020 (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 this Hearing was held electronically by video conference in accordance with Rule 5.1 of the MFDA Rules of Procedure;
AND WHEREAS based upon the admissions of the Respondent, the Hearing Panel is of the opinion that:
- between 2009 and March 2018, the Respondent engaged in outside business activities, including serving as President, Chief Executive Officer and director of a mortgage investment corporation without prior written approval from the Member, contrary to the policies and procedures of the Member and MFDA Rules 1.2.1(d) [now Rule 1.3.2] and Rule 1.1.2 as it relates to MFDA Rules 2.10 and 2.5.1;
- between September 2014 and March 2018, the Respondent engaged in securities related business that was not carried on for the account of the Member or processed through the facilities of the Member by selling, recommending, referring or otherwise facilitating investments in preferred shares of a mortgage investment corporation by 12 individuals including 1 client of the Member, contrary to MFDA Rule 1.1.1(a); and
- between 2014 and 2017, the Respondent provided inaccurate responses to the Member on four annual compliance questionnaires by inaccurately denying that he was engaged in any unapproved outside activities, 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 suspended from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA for a period of five months commencing from the date of this Order, pursuant to s. 24.1.1(c) of MFDA By-law No. 1;
- The Respondent shall pay a fine in the amount of $25,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1 which shall be payable in instalments as follows:
- $5,000 payable on the date of this Order; and
- $1,667 payable on the first day of each month from August 1, 2020 to July 1, 2021;
- The Respondent shall pay costs to the MFDA in the amount of $5,000 on the date of this Order, pursuant to s. 24.2 of MFDA By-law No. 1;
- The Respondent shall in the future comply with MFDA Rules 1.3.2, 1.1.1(a) and 2.1.1 and the policies and procedures of any Member with whom he is registered in the future; and
DATED this 25th day of June, 2020.
DATED: Jun 25, 2020
"Kenneth P. Mann"
Kenneth P. Mann