June 29, 2023 (Toronto, Ontario) – A settlement hearing in the matter of Megan Lynn Stokes (the “Respondent”) was held electronically by videoconference on March 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 February 7, 2023 (the “Settlement Agreement”), between Staff of CIRO and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:
- shall be suspended from acting as a branch manager or in any supervisory capacity for a Dealer Member registered as a mutual fund dealer (formerly Members of the MFDA) for a period of two months commencing March 23, 2023;
- a fine in the amount of $7,500 (“Fine”);
- costs in the amount of $5,000 (“Costs”);
- shall successfully complete an industry course that is acceptable to Staff of the Corporation, within 12 months of the acceptance of the Settlement Agreement, pursuant to s. 18.104.22.168(f) of the Mutual Fund Dealer Rules; and
- shall in the future comply with Mutual Fund Dealer Rules 2.1.1, and 2.1.4(2).
- In the Settlement Agreement, the Respondent admitted that between June 2019 and January 2020, she altered client contact information on the Dealer Member’s system without the knowledge or authorization of the client, which had the effect of interfering with the Member’s supervision of the Respondent and impacted its ability to communicate with clients, contrary to Mutual Fund Dealer Rules 2.1.1 and 2.1.4(2).
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 Uxbridge, 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.