WHEREAS on July 6, 2020, 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 (the “Notice of Hearing”) in respect of a disciplinary proceeding commenced against Jewel Mary Henricks (the “Respondent”);
AND WHEREAS appearances were held in this matter before a public representative of the Pacific Regional Council of the MFDA on September 8, 2020 and November 6, 2020;
AND WHEREAS on January 21-22, 2021, a hearing panel of the Pacific Regional Council (the “Hearing Panel”) conducted a hearing with respect to the allegations described in the Notice of Hearing amended with leave of the Hearing Panel by Order dated January 22, 2021;
AND WHEREAS after hearing the evidence and the submissions from the Respondent and Staff, the Hearing Panel found that the Respondent:
- in June 2017, accepted a $5,000 cheque from a client to place in a “gifting program”, which the Respondent deposited into her personal bank account, thereby engaging in personal financial dealing with a client that gave rise to a conflict or potential conflict of interest that the Respondent did not disclose to the Member or 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, 2.1.1, 1.1.2, and 2.5.1;
- on or around July 7, 2017, deposited proceeds of redemptions from the account of a client at the Member totaling $3,508.82 into her personal bank account, thereby engaging in personal financial dealings with a client which gave rise to a conflict or potential conflict of interest that she did not disclose to the Member or 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, 2.1.1, 1.1.2, and 2.5.1;
- between February 2016 and February 2018, recorded the home address of two clients using her own business address on five client account application forms and recorded the email addresses of three clients using her own personal email address on eight client account application forms, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 1.1.2, and 2.5.1; and
- commencing on or about September 21, 2018, failed to cooperate with MFDA Staff’s investigation into her conduct, contrary to section 22.1 of MFDA By-law No. 1.
AND WHERAS on May 7, 2021, the Hearing Panel heard submissions from the Respondent and Staff concerning the appropriate sanctions to impose on the Respondent.
IT IS HEREBY ORDERED THAT:
- The Respondent is permanently prohibited from conducting securities related business while in the employ of or in association with a Member of the MFDA, pursuant to section 24.1.1(e) of MFDA By-law No. 1.
- The Respondent shall pay a fine in the amount of $50,000, pursuant to section 24.1.1(b) of MFDA By-law No. 1.
- The Respondent shall pay costs in the amount of $10,000, pursuant to section 24.2 of MFDA By-law No. 1.
Joseph A. BernardoJoseph A. BernardoChair
Barbara FraserBarbara FraserIndustry Representative
Michelle LeungMichelle LeungIndustry Representative