CIRO Hearing Panel make findings of misconduct against Wenyuan (Simon) Fan
September 25, 2023 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”), now Canadian Investment Regulatory Organization (“CIRO”), commenced a disciplinary proceeding in respect of Wenyuan (Simon) Fan (the “Respondent”) by Notice of Hearing dated December 28, 2022 (“Notice of Hearing”).
The hearing of this matter on its merits was held electronically by videoconference on September 1, 2023, before a three-member Hearing Panel of the CIRO Ontario District Hearing Committee. After receiving evidence and hearing submissions from CIRO Staff with respect to misconduct and sanctions, the Hearing Panel found that the five allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct:
Allegation #1: In January 2021, the Respondent opened a new account for client YQ and processed transactions in the client’s account:
- without the authorization of the client; or
- based on false or misleading statements he made to the client,
contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 1.1.2 (as it relates to MFDA Rule 2.5.1), or 2.1.4.[1]
Allegation #2: In January 2021, the Respondent signed the signature and initials of client YQ on an account opening form and submitted it to the Member for processing, contrary to MFDA Rule 2.1.1.
Allegation #3: Between January and February 2021, the Respondent recorded false or misleading notes on the Member’s system, contrary to MFDA Rule 2.1.1.
Allegation #4: In February 2021, the Respondent made false or misleading statements to client YQ after opening the new account for client YQ and processing transactions in the client’s account, contrary to MFDA Rule 2.1.1.
Allegation #5: In February 2021, the Respondent made false or misleading statements to the Member during the course of an investigation into his conduct, contrary to MFDA Rule 2.1.1.
The Hearing Panel reserved their decision on sanctions and advised that they will issue written reasons for their decision as to misconduct and sanctions in due course.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in Ottawa, Ontario area.
The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.
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[1] On June 30, 2021, amendments to MFDA Rule 2.1.4 came into effect. As the conduct addressed in this proceeding, pre-dated the amendment to the Rule, any reference to MFDA Rule 2.1.4 in this proceeding is to the version of the Rule that was in effect between January 2021 and June 30, 2021.
DM 906978
