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File No. 2016108

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: Jason Andrew Savoy

Order

(ARISING FROM SETTLEMENT HEARING ON NOVEMBER 2, 2017)

WHEREAS the Mutual Fund Dealers Association of Canada (“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 Atlantic Regional Council (“Hearing Panel”) of the MFDA should accept the settlement agreement (“Settlement Agreement”) entered into between Staff of the MFDA (“Staff”) and the Respondent, Jason Andrew Savoy (“Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated October 24, 2017 (“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:

  1. in or around December 2013, agreed to personally reimburse a client the deferred sales charge fees the client would incur on a transaction, without the knowledge and approval of the Member, and then reneged on the agreement, contrary to MFDA Rules 2.1.4 and 2.1.1, and MFDA Policy No. 3;
  2. between 2009 and 2014, obtained and possessed 10 pre-signed client account forms in respect of 7 clients, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, and 2.1.1;
  3. between April 2007 and October 2013, accepted cash deposits from 6 clients on 11 occasions, and used the cash deposits to purchase bank drafts to invest in mutual funds on the clients’ behalf, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, and 2.1.1;
  4. between October 2009 and August 2014, delayed the processing of 20 transactions in the accounts of 10 clients, thereby failing to process trades in client accounts in a timely manner and consistent with, subsections 9.1 and 10.2 of the National Instrument 81-102, contrary to MFDA Rule 2.1.1;
  5. between September 2012 and 2014, compensated 6 clients for fees incurred by the client as a result of investment losses due to errors or trade delays, without the Member’s prior consent, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, and 2.1.1, and MFDA Policy No. 3;
  6. between 2004 and 2013, had and continued in a dual occupation by providing tax preparation services to 14 clients, which 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 MFDA Rule 1.3), 1.1.2, 2.5.1, and 2.1.1;
  7. between July 2014 and November 2014, made misleading statements during the Member’s investigation into his conduct, thereby interfering with the ability of the Member to supervise his conduct, contrary to MFDA Rule 2.1.1;
  8. between 2007 and 2013, misled the Member in annual compliance questionnaires when he falsely represented to the Member that he:
    1. did not arrange for and maintain pre-signed forms;
    2. did not enter into financial settlements with clients that had not been approved by the Member; and
    3. had disclosed and sought approval for outside business activities,

    thereby interfering with the ability of the Member to supervise his conduct, contrary to MFDA Rule 2.1.1; and

  9. in January 2013 and December 2015, failed to process transactions requested by 2 clients on 2 occasions, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:

  1. The Respondent shall pay a fine of $25,000, pursuant to s. 24.1.1.(b) of MFDA By-law No. 1;
  1. The Respondent shall pay costs of $2,500, pursuant to section 24.2 of MFDA
    By-Law No. 1;
  1. The payment by the Respondent of the fine and costs described above in paragraphs 1 and 2 shall be made to and received by MFDA Staff in certified funds as follows:
    1. $2,500 (costs) shall be paid upon acceptance of the Settlement Agreement by the Hearing Panel;
    2. $2,500 (fine) on or before December 29, 2017;
    3. $2,500 (fine) on or before January 31, 2018;
    4. $2,500 (fine) on or before February 28, 2018;
    5. $2,500 (fine) on or before March 29, 2018;
    6. $2,500 (fine) on or before April 30, 2018;
    7. $2,500 (fine) on or before May 31, 2018;
    8. $2,500 (fine) on or before June 28, 2018;
    9. $2,500 (fine) on or before July 31, 2018;
    10. $2,500 (fine) on or before August 31, 2018; and
    11. $2,500 (fine) on or before September 28, 2018;
  1. If the Respondent fails to make any of the payments described above in paragraph 3 then:
    1. any outstanding balance of the fine and costs owed by the Respondent shall immediately become due and payable to the MFDA; and
    2. the Respondent shall continue to be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the fine and costs owed by the Respondent is paid to the MFDA, pursuant to section 24.3.13(c) of MFDA By-law No. 1;
  1. 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 6 (six) months, commencing from the date of the Hearing Panel’s Order, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
  1. The Respondent shall be prohibited from acting as a branch manager or in a supervisory capacity while in the employ of or associated with any MFDA Member for a period of 5 (five) years, commencing from the date of the Hearing Panel’s Order, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
  1. The Respondent shall successfully complete an ethics or other industry course acceptable to the MFDA within one year of the Hearing Panel’s Order;
  1. The Respondent will in the future comply with MFDA Rules 1.1.2, 2.5.1, 1.2.1(c) (now MFDA Rule 1.3), 2.1.1, 2.1.4, MFDA Policy No. 3; and subsections 9.1(1) and (2) and 10.2(1) and (2) of the National Instrument 81-102; and
  1. 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.

DATED: Nov 2, 2017

"George MacDonald"

George MacDonald

Chair


"Ann C. Etter"

Ann C. Etter

Industry Representative


"Joanne Hébert"

Joanne Hébert

Industry Representative


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