November 10, 2021 (Toronto, Ontario) – A settlement hearing in the matter of Laura Lynn Monteiro (the “Respondent”) was held on November 9, 2021 by electronic hearing 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 accepted the settlement agreement dated October 13, 2021 (“Settlement Agreement”), between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- has been suspended from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA for a period of one month, expiring on December 8, 2021;
- a fine in the amount of $20,000;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rules 1.1.1, 1.1.2, 2.1.1, and 2.5.1.
In the Settlement Agreement, the Respondent admitted that:
- in February 2017, she processed 13 unauthorized trades in the accounts of 3 clients, contrary to policies and procedures of the Member and MFDA Rules 2.1.1, 2.5.1 and 1.1.2;
- between January 2017 and March 2017, she processed 34 switches in the accounts of 8 clients, without obtaining client instructions in respect of the timing of the switches, thereby engaging in discretionary trading, contrary to the policies and procedures of the Member and MFDA Rules 2.3.1(b), 2.1.1, 2.5.1 and 1.1.2;
- in February 2017, she made unauthorized changes to Know-Your-Client Information of 3 clients, thereby failing to use due diligence to learn and accurately record the essential facts relative to each client and to each order or account accepted, contrary to MFDA Rules 2.2.1 and 2.1.1; and
- between January 2017 and March 2017, she failed to document and maintain records of Know-Your-Client information that she obtained with respect to the accounts of 9 clients, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 2.5.1 and 1.1.2.
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 conducted business 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.