MFDA Hearing Panel approves settlement agreement with Joshua Brock
April 18, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Joshua Brock (“Respondent”) was held on April 16, 2018 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 March 12, 2018 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $10,000 (“Fine”);
- costs in the amount of $2,500 (“Costs”);
- the Fine and Costs described above is payable to the MFDA in certified funds as follows:
- $2,500 (Costs) shall be paid upon acceptance of the Settlement Agreement;
- $833.33 (Fine) on or before May 25, 2018;
- $833.33 (Fine) on or before June 29, 2018;
- $833.33 (Fine) on or before July 27, 2018;
- $833.33 (Fine) on or before August 31, 2018;
- $833.33 (Fine) on or before September 28, 2018;
- $833.33 (Fine) on or before October 26, 2018;
- $833.33 (Fine) on or before November 30, 2018;
- $833.33 (Fine) on or before December 28, 2018;
- $833.33 (Fine) on or before January 25, 2019;
- $833.33 (Fine) on or before February 22, 2019;
- $833.33 (Fine) on or before March 29, 2019;
- $833.33 (Fine) on or before April 26, 2019;
- if he fails to make any of the payments described above then:
- any outstanding balance of the Fine and Costs shall immediately become due and payable to the MFDA; and
- he shall continue to be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine and Costs owed are paid to the MFDA.
- prior to becoming re-registered as a mutual fund salesperson with a Member of the MFDA, he shall complete an industry course acceptable to Staff of the MFDA; and
- shall in the future comply with MFDA Rules 2.3.1 and 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
- between July 28, 2011 and August 5, 2016, he obtained, possessed, and in some instances, used to process transactions, 31 pre-signed forms in relation to 19 clients, contrary to MFDA Rule 2.1.1; and
- between August 8, 2012 and January 20, 2016, he processed 5 trades in relation to 4 clients based on the instructions of someone other than the client, contrary to MFDA Rules 2.3.1 and 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 carried on business in Markham, 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.