July 13, 2021 (Toronto, Ontario) – A settlement hearing in the matter of Lucia Arruda (“Respondent”) was held by electronic hearing in Vancouver, British Columbia on July 12, 2021, before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement dated March 16, 2021 (“Settlement Agreement”), between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $12,000;
- costs in the amount of $2,500; and
- shall in future comply with Rules 1.1.2, 2.1.1, 2.2.1, 2.3.1, and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
- on or about May 29, 2019, she processed a trade in the account of a client without discussing all the elements of the trade with the client, contrary to the Member’s policies and procedures and MFDA Rules 2.3.1(b), 1.1.2, 2.5.1, and 2.1.1; and
- on May 29, 2019, she altered cheques received from a client for investment, signed the initials of two clients next to the alterations, and submitted the cheques to the Member for processing, 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 conducted business out in the Vancouver, 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.