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MFDA announces settlement hearing to take place in respect of David Lillie

For further information, please contact:

Charles Toth
Vice President, Enforcement

MFDA announces settlement hearing to take place in respect of David Lillie

September 29, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of David Grahame Lillie (“Respondent”) by Notice of Hearing dated July 4, 2017 (“Notice of Hearing”).

As specified in the Notice of Hearing, the first appearance in this proceeding was held today by teleconference before a Hearing Panel of the MFDA’s Central Regional Council.

As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this proceeding will take place on January 25. 2018, commencing at 10:00 a.m. (Eastern) or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:

  1. on or about November 5, 2014, arranged for three (3) clients to complete a total of five (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;
  2. between November 5, 2014 and February 2016, 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; and
  3. on December 5, 2014 and February 10, 2015, falsified two (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.

MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

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.

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