News release

September 26, 2023 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”), now Canadian Investment Regulatory Organization (“CIRO”), commenced a disciplinary proceeding in respect of George Yamamoto (the “Respondent”) by Notice of Hearing dated October 7, 2022 (the “Notice of Hearing”).

At the first settlement hearing held on December 15, 2022 and March 3, 2023, the Hearing Panel declined to approve an earlier settlement agreement concerning the same subject matter entered into between Staff of CIRO and Mr. Yamamoto. Following that hearing, Staff of CIRO and Mr. Yamamoto were free to attempt to reach a different settlement.

As a result of a settlement agreement entered into between Staff of CIRO and the Respondent, a settlement hearing will take place electronically by videoconference before a Hearing Panel of CIRO’s Ontario District Hearing Committee on October 25, 2023, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held. Members of the public who would like to obtain further particulars should contact [email protected].

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to sections 20 and 24.1 of MFDA By-law No. 1 (now Mutual Fund Dealer Rules 7.3 and 7.4.1). In particular, the settlement agreement concerns the allegations that:

1. The Respondent was aware that he was or would be named as the recipient of legacies in the wills of clients A and B, which gave rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, 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 Rule 2.5.1) (now Mutual Fund Dealer Rules 2.1.4, 2.1.1, 1.1.2 and 2.5.1);
2. the Respondent solicited monies from clients A and B, which gave rise to conflicts or potential conflicts of interest that the Respondent failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, 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 Rule 2.5.1) (now Mutual Fund Dealer Rules 2.1.4, 2.1.1, 1.1.2 and 2.5.1); and
3. the Respondent disclosed information regarding the business and affairs of clients A and B to client A’s son, without the consent of the clients, thereby failing to maintain the clients’ information in confidence, contrary to the Member’s policies and procedures and MFDA Rules 2.1.3, 2.1.1 and 1.1.2 (as it relates to Rule 2.5.1) (now Mutual Fund Dealer Rules 2.1.3, 2.1.1, 1.1.2 and 2.5.1).

Settlement hearings of CIRO are typically held in the absence of the public pursuant to section 20.5 of MFDA By-Law No. 1 (now Mutual Fund Dealer Rule 7.3.5) and Rule 15.2 (2) of the Mutual Fund Dealer 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 carried on business in the Toronto, Ontario area.

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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