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IN THE MATTER OF THE MUTUAL FUND DEALER RULES

Re: Lifan Song

Order

WHEREAS on December 28, 2022, 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 [now Mutual Fund Dealer Rules 7.3 and 7.4] in respect of a disciplinary proceeding commenced against Lifan Song (the “Respondent”);

AND WHEREAS on January 1, 2023, the MFDA and the Investment Industry Regulatory Organization of Canada (“IIROC”) consolidated to form a new self-regulatory organization now called the Canadian Investment Regulatory Organization (“CIRO”);

AND WHEREAS on February 15, 2023, the first appearance in this hearing was held electronically by videoconference before one public representative of a district hearing committee acting on behalf of a hearing panel of the Manitoba District Hearing Committee of CIRO (the “Hearing Panel”), pursuant to Mutual Fund Dealer Rule 7.2.4(b), which permits one public representative to be designated to act on behalf of a Hearing Panel for the purpose of hearing and determining any procedural matter;

AND WHEREAS at the first appearance, among other things, a further appearance was scheduled to take place on June 9, 2023 and the hearing of this matter on its merits was scheduled to take place electronically by videoconference from September 18-20, 2023;

AND WHEREAS following the first appearance, Staff of CIRO (“Staff”) and the Respondent engaged in without prejudice discussions to try to narrow the issues in dispute on the merits or reach a proposed settlement;

AND WHEREAS on consent of the parties, the interim appearance that was scheduled to take place on June 9, 2023 was cancelled;

AND WHEREAS the parties made a joint request to adjourn the hearing of the matter on its merits and agreed to schedule an interim appearance before the Chair of the Hearing Panel on September 20, 2023;

AND WHEREAS on September 20, 2023, Staff and the Respondent’s Counsel attended the interim appearance electronically by videoconference to address scheduling and other procedural matters and upon hearing the submissions of the parties;

IT IS HEREBY ORDERED THAT:

  1. In accordance with Rule 10.1 of the ROP, Staff shall provide documentary disclosure to the Respondent on or before November 6, 2023;
  2. In accordance with Rule 10.2 of the ROP, the Respondent shall provide documentary disclosure to Staff on or before December 1, 2023;
  3. In accordance with Rule 11 of the ROP, Staff and the Respondent shall provide each party with a witness list and a witness statement for each witness that the party intends to call at the hearing on the merits on or before December 15, 2023;
  4. Subject to any further Order of the Hearing Panel, the hearing of this matter on its merits shall take place electronically by videoconference on February 6 and 7, 2024, commencing each day at 11:00 AM (Central), or as soon thereafter as the matter can be heard;
  5. In the event that Staff and the Respondent enter into a settlement agreement to resolve the subject matter of this proceeding prior to December 31, 2023, Staff shall file written submissions and any other materials that Staff intends to rely upon at a settlement hearing on or before Tuesday, January 16, 2024 and the Respondent shall file written submissions or other materials that the Respondent wishes to rely upon, on or before January 30, 2024; and
  6. If at any time a non-party to this proceeding, with the exception of the bodies set out in Mutual Fund Dealer Rule 6.3, requests production of or access to exhibits in this proceeding that contain personal information as defined by CIRO’s Privacy Policy, then the Corporate Secretary’s Office, Mutual Fund Dealer Division of CIRO shall not provide to the non-party, copies of or access to the requested exhibits without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the ROP.
  • Robert Stack
    Robert Stack
    Chair
  • Sean Shore
    Sean Shore
    Industry Representative
  • Bernie Plett
    Bernie Plett
    Industry Representative

On January 1, 2023, the Investment Industry Regulatory Organization of Canada (“IIROC”) and the Mutual Fund Dealers Association of Canada (the “MFDA”) were consolidated into a single self-regulatory organization recognized under applicable securities legislation. The New Self-Regulatory Organization of Canada (referred to herein as the “Corporation”) adopted interim rules that incorporate the pre-amalgamation regulatory requirements contained in the rules and policies of IIROC and the by-law, rules and policies of the MFDA (the “Interim Rules”). The Interim Rules include (i) the Investment Dealer and Partially Consolidated Rules, (ii) the UMIR and (iii) the Mutual Fund Dealer Rules. These rules are largely based on the rules of IIROC and certain by-laws, rules and policies of the MFDA that were in force immediately prior to amalgamation. Where the rules of IIROC and the by-laws, rules and policies of the MFDA that were in force immediately prior to amalgamation have been incorporated into the Interim Rules, Enforcement Staff have referenced the relevant section of the Interim Rules. Pursuant to Mutual Fund Dealer Rule 1A and s.14.6 of By-Law No.1 of the Corporation, contraventions of former MFDA regulatory requirements may be enforced by the Corporation.