June 16, 2020 (Toronto, Ontario) – A settlement hearing in the matter of Steven John Hagerman (“Respondent”) was held today in Toronto, Ontario by electronic hearing before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement dated April 14, 2020 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of 4 months;
- a fine in the amount of $7,500;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rules 2.2.1 and 2.1.1.
In the Settlement Agreement, the Respondent admitted that between October 2013 and April 2014, he opened an account and processed trades in an account for a client that he had never met or communicated with on the basis of advice and instructions provided by an unregistered individual, and failed to use due diligence to learn the essential facts relative to the client and to ensure that each order accepted was suitable, contrary to the policies and procedures of the Member regarding stealth advising and MFDA Rules 2.2.1 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 the Kingston, 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 81,000 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.