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Charles Toth
Vice President, Enforcement

MFDA announces disciplinary proceeding in respect of Paul Walker

November 29, 2022 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (the “MFDA”) has commenced disciplinary proceedings in respect of Paul O’Brian Walker (the “Respondent”). In its Notice of Hearing dated November 23, 2022 (the “Notice of Hearing”), 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: Between June 2010 and August 2017, the Respondent recommended, sold, or facilitated the sale of securities offered by a company that he incorporated and operated, thereby engaging in securities related business that was not carried on for the account of the Member or through its facilities contrary to the Member’s policies and procedures and MFDA Rules 1.1.1, 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #2: Between June 2010 and August 2017, the Respondent solicited and received money from clients for the purchase of securities offered by a company that he incorporated, which gave rise to a conflict or potential conflict of interest that the Respondent did not disclose to the Member or otherwise ensure was addressed 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,[1] 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #3: Between November 2018 and May 2021, the Respondent engaged in personal financial dealings with a client by soliciting and accepting a loan from a client, which gave rise to a conflict or potential conflict of interest that the Respondent did not disclose to the Member or otherwise ensure was addressed 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, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

Allegation #4: Between June 2010 and April 2021, the Respondent engaged in outside business activities that were not disclosed to or approved by the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(d),[2] 2.1.1, and 1.1.2 (as it relates to MFDA Rule 2.5.1).

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on January 23, 2023 at 11:00 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 issues. The appearance will be open to the public, except as may be required for the protection of confidential matters. Members of the public who would like to listen to the teleconference should contact hearings@mfda.ca to obtain particulars.

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 carried on business in the Mississauga, 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 76,695 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.

[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 MFDA Rule 2.1.4 that was in effect between February 27, 2006 and June 30, 2021.

[2] Effective December 3, 2010, MFDA Rule 1.2.1(d) concerning dual occupations was renumbered as MFDA Rule 1.2.1(c). Effective March 17, 2016, MFDA Rule 1.2.1(c) was amended and renumbered as MFDA Rule 1.3.