MFDA Hearing Panel approves settlement agreement with Grace Wong Uy
May 31, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Grace Wong Uy (“Respondent”) was held today in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated May 28, 2018 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed:
- the Respondent’s authority to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member shall be prohibited for a period of one year commencing on the date the Settlement Agreement is accepted by the Hearing Panel, pursuant to section 24.1.1(e) of MFDA By-law No. 1;
- a fine in the amount of $31,000, payable to the MFDA as follows:
- $1,000 payable on or before the date of the settlement hearing;
- $30,000 payable in 12 monthly instalments of $2,500 each, commencing one month from the date the Settlement Agreement is accepted;
- costs in the amount of $5,000; and
- in the future shall comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulation made thereunder, including MFDA Rules 1.1, 1.2.1(c) (now MFDA Rule 1.3), 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National instrument 31-103.
In the Settlement Agreement, the Respondent admitted that:
- between 2012 and 2013, she engaged in securities related business which was not carried on for the account of the Member or conducted through its facilities by recommending, selling, facilitating the sale of, and/or making referrals in respect of investments to at least 10 clients totaling approximately $360,000, contrary to the Member’s policies and procedures, MFDA Rules 1.1.1, 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National instrument 31-103;
- between 2012 and 2013, she referred clients to Approved Person HL to purchase investments outside the Member, and received at least $18,000 in referral fees for doing so, thereby participating in an unapproved referral arrangement to which the Member was not a party, contrary to the Member’s policies and procedures, MFDA Rules 2.1.1, 2.4.2, 2.5.1 and 1.1.2, and the requirements of sections 13.7 and 13.8 of National Instrument 31-103; and
- between December 18, 2015 and January 24, 2017, she misled the Member and the MFDA during its investigations into her conduct with respect to her knowledge and involvement in referring clients to purchase investments outside the Member, contrary to MFDA Rule 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in Richmond Hill, Ontario.
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 82,000 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.