Notice of Hearing

NOTICE is further given that the MFDA alleges the following violations of the By-laws, Rules or Policies of the MFDA:

PARTICULARS

NOTICE is further given that the following is a summary of the facts alleged and intended to be relied upon by the MFDA at the hearing:

Registration History

1. The Respondent was registered in Alberta from April 19, 2012 to December 31, 2012 and in British Columbia from April 19, 2012 to December 31, 2015, with Portfolio Strategies Corporation (“PSC”), a Member of the MFDA.

2. The Respondent is not currently registered in the securities industry.

3. At all material times, the Respondent conducted business in the Vancouver, British Columbia area.

Unauthorized Discretionary Trading and Pre-Signed Account Forms

4. At all material times, PSC had a policy and procedure in place that prohibited its Approved Persons from using pre-signed account forms.

5. At all material times, the Respondent was the mutual fund salesperson responsible for servicing client A’s mutual fund accounts at PSC.

6. On October 30, 2015, the Respondent met with client A to discuss client A’s investments which were held at National Bank Financial. Client A agreed to transfer her investments from National Bank Financial to PSC in cash.

7. In October and November 2015, the Respondent obtained, maintained and/or used 6 pre-signed account forms. The pre-signed account forms consisted of:
   1. 2 PSC Account Application Forms;
   2. 1 Letter of Direction Trade Form;
   3. 1 Transfer Authorization Form;
   4. 1 Know-Your-Client Form; and
   5. 1 FATCA US Citizen Declaration.

8. The Respondent used the above described pre-signed account forms to open an account for client A at PSC, and transfer client A’s investments from National Bank Financial to PSC.

9. On February 2, 2016, the Respondent used the pre-signed account forms described above to process 4 purchases in client A’s account of AGF equity mutual funds. Client A was unaware of, and did not authorize, these purchases.

10. By virtue of the foregoing, the Respondent engaged in unauthorized discretionary trading, contrary to MFDA Rules 2.3.1 and 2.1.1. In addition, the Respondent obtained, maintained and/or used 6 pre-signed account forms, contrary to MFDA Rule 2.1.1.

Falsified Client Initials and Signature

11. On or about June 23, 2015, the Respondent altered the date on a commission disclosure statement from April 22, 2015 to June 23, 2015, without obtaining the client’s initials to acknowledge the change to the account form, contrary to MFDA Rule 2.1.1.

12. In addition, at all material times, PSC had a policy and procedure in place that required its Approved Persons to obtain a signed dual occupation disclosure statement from each client when opening a new account. On or about October 30, 2015, the Respondent signed client A’s signature on a dual occupation disclosure form, contrary to MFDA Rule 2.1.1.

False Statement to the MFDA

13. On February 19, 2016, in response to a question from MFDA Staff during its investigation into the Respondent’s conduct, the Respondent falsely answered “no” when asked if she had altered the date on the commission disclosure statement described above at paragraph 11.

14. By virtue of the foregoing, the Respondent misled MFDA Staff during the course of its investigation into her conduct, contrary to MFDA Rule 2.1.1.

NOTICE is further given that the Respondent shall be entitled to appear and be heard and be represented by counsel or agent at the hearing and to make submissions, present evidence and call, examine and cross-examine witnesses.

NOTICE is further given that MFDA By-laws provide that if, in the opinion of the Hearing Panel, the Respondent:

• has failed to carry out any agreement with the MFDA;
• has failed to comply with or carry out the provisions of any federal or provincial statute relating to the business of the Member or of any regulation or policy made pursuant thereto;
• has failed to comply with the provisions of any By-law, Rule or Policy of the MFDA;
• has engaged in any business conduct or practice which such Regional Council in its discretion considers unbecoming or not in the public interest; or
• is otherwise not qualified whether by integrity, solvency, training or experience,

the Hearing Panel has the power to impose any one or more of the following penalties:

1. a reprimand;
2. a fine not exceeding the greater of:
   1. $5,000,000.00 per offence; and
   2. an amount equal to three times the profit obtained or loss avoided by such person as a result of committing the violation;
3. suspension of the authority of the person to conduct securities related business for such specified period and upon such terms as the Hearing Panel may determine;
4. revocation of the authority of such person to conduct securities related business;
5. prohibition of the authority of the person to conduct securities related business in any capacity for any period of time;
6. such conditions of authority to conduct securities related business as may be considered appropriate by the Hearing Panel;

NOTICE is further given that the Hearing Panel may, in its discretion, require that the Respondent pay the whole or any portion of the costs of the proceedings before the Hearing Panel and any investigation relating thereto.

NOTICE is further given that the Respondent must serve a Reply on Enforcement Counsel and file a Reply with the Office of the Corporate Secretary within twenty (20) days from the date of service of this Notice of Hearing.

A Reply shall be served upon Enforcement Counsel at:

Mutual Fund Dealers Association of Canada
650 West Georgia Street, Suite 1220
Vancouver, B.C. V6B 4N9
Attention: Christopher Corsetti
Email: ccorsetti@mfda.ca

A Reply shall be filed by:

1. providing four (4) copies of the Reply to the Office of the Corporate Secretary by personal delivery, mail or courier to:
   1. The Mutual Fund Dealers Association of Canada
      121 King Street West
      Suite 1000
      Toronto, ON M5H 3T9
      Attention: Office of the Corporate Secretary; or
2. transmitting one (1) electronic copy of the Reply to the Office of the Corporate Secretary by e-mail at CorporateSecretary@mfda.ca.

A Reply may either:

1. specifically deny (with a summary of the facts alleged and intended to be relied upon by the Respondent, and the conclusions drawn by the Respondent based on the alleged facts) any or all of the facts alleged or the conclusions drawn by the MFDA in the Notice of Hearing; or
2. admit the facts alleged and conclusions drawn by the MFDA in the Notice of Hearing and plead circumstances in mitigation of any penalty to be assessed.

NOTICE is further given that the Hearing Panel may accept as having been proven any facts alleged or conclusions drawn by the MFDA in the Notice of Hearing that are not specifically denied in the Reply.

NOTICE is further given that if the Respondent fails:

1. to serve and file a Reply; or
2. attend at the hearing specified in the Notice of Hearing, notwithstanding that a Reply may have been served,

the Hearing Panel may proceed with the hearing of the matter on the date and the time and place set out in the Notice of Hearing (or on any subsequent date, at any time and place), without any further notice to and in the absence of the Respondent, and the Hearing Panel may accept the facts alleged or the conclusions drawn by the MFDA in the Notice of Hearing as having been proven and may impose any of the penalties described in the By-laws.

End.