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IN THE MATTER OF A DISCIPLINARY HEARING
PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Edward Henry MacDermaid

Order

ARISING FROM THE DECISION (PENALTY) AND REASONS DATED OCTOBER 4, 2021

WHEREAS on May 17, 2021, the Mutual Fund Dealers Association of Canada (the “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 Edward Henry MacDermaid (the “Respondent”);

And Whereas the Notice of Hearing was served on the Respondent by e-mail on May 20, 2021;

AND WHEREAS on June 11, 2021, the first appearance in this proceeding was held by videoconference before a Chair on behalf of a hearing panel of the Atlantic Regional Council of the MFDA (the “Hearing Panel”), pursuant to s. 19.13(b) of MFDA By-Law No. 1;

AND WHEREAS during the first appearance Staff and the Respondent made submissions to the Chair of the Hearing Panel with respect to scheduling and other procedural matters;

AND WHEREAS at the first appearance, the Chair of the Hearing Panel scheduled the hearing of this matter on its merits to take place on September 8, 2021;

AND WHEREAS on July 22, 2021, the Respondent and Staff entered into an Agreed Statement of Facts (“ASF”), in which the Respondent admitted that:

  1. between December 15, 2014 and October 25, 2019, the Respondent photocopied signature pages from account forms that had been signed by clients and re-used the signature pages to complete 48 additional forms in respect of 18 clients, contrary to MFDA Rule 2.1.1;
  2. between February 29, 2018 and March 22, 2018, the Respondent altered and used to process transactions 2 account forms in respect of 2 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and
  3. between March 2, 2015 and August 24, 2017, the Respondent obtained, possessed, and used to process transactions, 6 pre-signed account forms in respect of 4 clients, contrary to MFDA Rule 2.1.1.

AND WHEREAS on September 10, 2019, the Respondent resigned from the Member and was not registered in the securities industry in any capacity following his resignation from the Member;

AND WHEREAS at a penalty hearing that was conducted via videoconference on September 8, 2021, on the basis of the admissions made by the Respondent in the ASF, the Hearing Panel made findings of misconduct against the Respondent and received written submissions and a bill of costs submitted by Staff and heard oral submissions that were made by Staff and by the Respondent concerning the appropriate sanctions to impose on the Respondent as a consequence of his misconduct.

IT IS HEREBY ORDERED THAT:

  1. The Respondent is suspended from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of 24 months commencing on September 10, 2019, pursuant to s. 24.1.1(c) of MFDA By-law No. 1;
  2. The Respondent shall pay a fine in the amount of $5,000 on the date of this Order, pursuant to section 24.1.1(b) of MFDA By-law No. 1;
  3. The Respondent shall pay costs in the amount of $5,000 on the date of this Order, 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.
  • George MacDonald
    George MacDonald
    Chair
  • Darrell Bing
    Darrell Bing
    Industry Representative
  • Joshua Martin
    Joshua Martin
    Industry Representative

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