Order

WHEREAS on November 23, 2020, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA By-law No. 1 in respect of a disciplinary proceeding commenced against Viet Ton-That (the “Respondent”);

AND WHEREAS on February 16, 2021, the first appearance in this hearing was held by videoconference before the Chair of a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) in accordance with s. 19.13(b) of MFDA By-law No. 1;

AND WHEREAS at the first appearance, the Chair of the Hearing Panel scheduled the hearing of this matter on its merits (the “Hearing on the Merits”) to take place on April 15, 2021;

AND WHEREAS the Respondent and Staff of the MFDA (“Staff”) entered into an agreed statement of facts dated April 4, 2021 (the “Agreed Statement of Facts”), in which the Respondent admitted to facts that constitute misconduct for which the Respondent could be penalized on the exercise of the discretion of a Hearing panel pursuant to s. 24.1 of MFDA By-law No. 1;

AND WHEREAS on April 15, 2021, Staff and the Respondent attended the Hearing on the Merits by videoconference and presented the Agreed Statement of Facts to the Hearing Panel and made submissions with respect to the appropriate penalty to be imposed on the Respondent;

AND WHEREAS on the basis of the agreed facts and the submissions presented during the Hearing on the Merits, the Hearing Panel is of the opinion that:

1. Between February 14, 2018 and October 19, 2018, the Respondent misappropriated, or failed to account for, monies from two clients, thereby failing to deal fairly, honestly and in good faith with the clients, failing to observe high standards of ethics and conduct in the transaction of business, and engaging in business conduct or practice unbecoming or detrimental to the public interest, contrary to MFDA Rule 2.1.1;
2. Between no later than February 2018 and October 22, 2018, the Respondent engaged in personal financial dealings with a client by borrowing monies from a client, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1; and
3. Commencing December 20, 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA Bylaw No. 1.

IT IS HEREBY ORDERED THAT:

1. Commencing immediately, the authority of the Respondent to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member is permanently prohibited, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
2. The Respondent shall immediately pay a fine in the amount of $40,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;
3. The Respondent shall immediately pay costs in the amount of $5,000, 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.