December 16, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Hugo Donais (“Respondent”) was held on December 12, 2019 in Vancouver, British Columbia before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated November 27, 2019 (“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 three months;
- a fine in the amount of $2,500 (“Fine”);
- costs in the amount of $2,500 (“Costs”);
- payment of the Fine and Costs shall be made as follows:
- $1,500 (Costs) upon acceptance of the Settlement Agreement by the Hearing Panel;
- $583.35 (Costs) on or before January 31, 2020;
- $583.33 (Costs and Fine) on or before February 28, 2020;
- $583.33 (Fine) on or before March 31, 2020;
- $583.33 (Fine) on or before April 30, 2020;
- $583.33 (Fine) on or before May 29, 2020;
- $583.33 (Fine) on or before June 30, 2020; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, the Respondent admitted that:
- between March 2010 and November 2016, he, or his assistants for whom he was responsible, altered and in some cases, used to process transactions, 18 account forms in respect of 14 clients by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and
- between February 2011 and July 2016, he, or his assistants for whom he was responsible, obtained, possessed, and in some cases, used to process transactions, 30 pre-signed account forms in respect of 22 clients, contrary to MFDA Rule 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 Victoria, 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 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.