Order

WHEREAS on February 8, 2017, the Mutual Fund Dealers Association of Canada (“MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of By-law No. 1 in respect of a disciplinary proceeding commenced against Chun-Yi Tay (“Respondent”);

AND WHEREAS the Notice of Hearing was served on the Respondent on March 13, 2017;

AND WHEREAS the first appearance in this proceeding took place by teleconference before the Chair of a hearing panel of the Pacific Regional Council of the MFDA (“Hearing Panel”) on October 17, 2017 at 10:00 a.m. (Pacific) in accordance with s. 19.13(b) of MFDA By-law No. 1;

AND WHEREAS the Respondent entered into an agreed statement of fact with Staff of the MFDA, dated January 14, 2018;

AND WHEREAS the Hearing Panel is of the opinion that,

1. between May 26, 2015 and June 3, 2015, the Respondent processed two redemptions in the total amount of $51,200 USD, based upon email instructions received from a third party individual, who gained unlawful access to a client’s email account and subsequently misappropriated the proceeds of the redemptions, thereby failing to comply with the Member’s policies and procedures that prohibited its Approved Persons from accepting instructions from clients by email, contrary to MFDA Rules 1.1.2,  5.1, and 2.1.1; and
2. on or about June 3, 2015, after first advising the Member that she had been unable to speak with a client to confirm the client’s instructions to process a transaction, the Respondent in order to expedite the transaction subsequently executed documentation that falsely stated the confirmation had been obtained, thereby failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT:

1. the Respondent shall pay a fine in the amount of $5,000, pursuant to section 24.1.1(b) of By-law No. 1 (the “Fine”);

2. the Respondent shall pay the Fine in certified funds as follows:
   1. $416.66 (Fine) on or before February 1, 2018;
   2. $416.66 (Fine) on or before March 1, 2018;
   3. $416.66 (Fine) on or before April 1, 2018;
   4. $416.66 (Fine) on or before May 1, 2018;
   5. $416.66 (Fine) on or before June 1, 2018;
   6. $416.66 (Fine) on or before July 1, 2018;
   7. $416.66 (Fine) on or before August 1, 2018;
   8. $416.66 (Fine) on or before September 1, 2018;
   9. $416.66 (Fine) on or before October 1, 2018;
   10. $416.66 (Fine) on or before November 1, 2018;
   11. $416.66 (Fine) on or before December 1, 2018; and
   12. $416.74 (Fine) on or before January 1, 2019

3. if the Respondent fails to make any of the payments described above in sub-paragraph two:
   1. any outstanding balance of the Fine owed by the Respondent shall become immediately due and payable to the MFDA; and
   2. the Respondent shall 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 owed by the Respondent is paid to the MFDA, pursuant to s. 24.3.13(c) of MFDA By-law No. 1.;

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.