June 27, 2023 (Toronto, Ontario) – A settlement hearing in the matter of Ryan Todd Small (the “Respondent”) was held electronically by videoconference on February 23, 2023 in Toronto, Ontario before a three-member Hearing Panel of the Ontario District Hearing Committee of the Canadian Investment Regulatory Organization (“CIRO”).
The Hearing Panel accepted the settlement agreement dated December 5, 2022 (the “Settlement Agreement”), between Staff of CIRO and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:
- prohibited to conduct securities related business while in the employ of or associated with a Dealer Member registered as a mutual fund dealer (formerly Members of the MFDA) shall be prohibited for a period of 5 years commencing February 23, 2023;
- a fine in the amount of $20,000 (“Fine”);
- costs in the amount of $5,000 (“Costs”); and
- shall in the future comply with MFDA Rules 1.1.1, 1.3.2, 2.1.1, 2.1.4 and 1.2 (as it relates to MFDA Rule 2.5.1) [now Mutual Fund Dealer Rules 1.1.1, 1.3.2, 2.1.1, 2.1.4(b), 1.1.2 and 2.5.1].
In the Settlement Agreement, the Respondent admitted that:
- between June 2017 and December 2020, he engaged in unapproved outside activities when:
- he solicited clients and other individuals to invest in an investment which he had a direct interest in and which was not approved for sale by the Member; and
- he incorporated a company and acted as a director for the company, without the knowledge or approval of the Member,
contrary to the Member’s policies and procedures and MFDA Rules 1.3.2, 2.1.1 and 1.1.2 (as it relates to MFDA Rule 2.5.1) [now Mutual Fund Dealer Rules 1.3.2, 2.1.1, 1.1.2 and 2.5.1]; and
- between October 2020 and December 2020, he solicited clients and other individuals to invest in an investment which was not approved for sale by the Member, thereby engaging in securities related business that was not carried on for the account of the Member or through the facilities of the Member, contrary to MFDA Rules 1.1.1, 2.1.4, 2.1.1 and 1.2 (as it relates to Rule 2.5.1) [now Mutual Fund Dealer Rules 1.1.1, 2.1.4(b), 2.1.1, 1.1.2 and 2.5.1].
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 Mississauga, Ontario area.
Canadian Investment Regulatory Organization 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 carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada, and 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.