July 21, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) has commenced disciplinary proceedings in respect of David Grahame Lillie (“Respondent”). In its Notice of Hearing dated July 4, 2017, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: On or about November 5, 2014, the Respondent arranged for 3 clients to complete a total of 5 new account application forms in order to facilitate the transfer of the clients’ accounts to a new Member, prior to the Respondent being registered with the new Member, thereby engaging in registerable activity and securities related business on behalf of a Member with which the Respondent was not registered, contrary to MFDA Rules 1.1.1, 1.1.2 and 2.1.1.
Allegation #2: Between November 5, 2014 and February 2016, the Respondent obtained, possessed, and in some instances, used to process transactions, 26 pre-signed account forms in respect of 18 clients, contrary to MFDA Rule 2.1.1.
Allegation #3: On or about December 5, 2014 and February 10, 2015, the Respondent falsified 2 account forms and used them to process a transaction, by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on September 28, 2017 at 9:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters.
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 the Sault Ste. Marie, Ontario area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.
DM 563950 v1