August 12, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Matthew Elliott de Haan (“Respondent”) by Notice of Hearing dated January 18, 2021.
A disciplinary hearing in this matter was held on August 9-10, 2021 by electronic hearing in Vancouver, British Columbia before a three-member Hearing Panel of the MFDA’s Pacific Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated August 8, 2021 (“Agreed Statement of Facts”), in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which the Respondent could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:
- between on or about October 29, 2018 and December 3, 2018, he solicited seven (7) individuals, including one client, to invest in an investment that 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 the Member’s policies and procedures and MFDA Rules 1.1.1, 1.1.2, 2.1.1, and 2.5.1.
- between on or about October 29, 2018 and December 3, 2018, he engaged in an unapproved outside activity when he, acting on behalf of a third party company, solicited seven (7) individuals, including one client, to invest in an investment that was offered for sale by that company and not approved for sale by the Member, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 1.3.2, 2.1.1, and 2.5.1.
- on or about December 7, 2018, during the course of the Member’s supervisory investigation into his conduct, he provided a false or misleading statement to the Member, contrary to MFDA Rule 2.1.1.
Following submissions from the parties with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- 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 five years; and
- a fine in the amount of $15,000.
Copies of the Notice of Hearing and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent conducted business in the City of Abbotsford, British Columbia 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 80,000 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.