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Notice of Settlement Hearing

IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re:

Notice of Settlement Hearing


Notice of Settlement Hearing

File No. 200827




IN THE MATTER OF A SETTLEMENT HEARING
PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA


Re: Colin Michael Corner, Heather Darlene Halladay, Richard Gerald
Moore, James Edward Rainbird and John Joseph Hanson



NOTICE OF SETTLEMENT HEARING


NOTICE is hereby given that a hearing will be held before a hearing panel of the Central
Regional Council (the “Hearing Panel”) of the Mutual Fund Dealers Association of Canada (the
“MFDA”) in the hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario on
Tuesday, July 6, 2010 at 10:00 a.m. (Eastern), or as soon thereafter as the hearing can be held, to
consider whether, pursuant to section 24.4 of By-law No. 1 of the MFDA, the Hearing Panel
should accept (i) the settlement agreement entered into between Staff of the MFDA (“Staff”) and
Colin Michael Corner, Heather Darlene Halladay, Richard Gerald Moore and James Edward
Rainbird; and (ii) the settlement agreement entered into between Staff and John Joseph Hanson
(collectively the “Settlement Agreements”). (Colin Michael Corner, Heather Darlene Halladay,
Richard Gerald Moore, James Edward Rainbird and John Joseph Hanson will be referred to
collectively as the “Respondents”).


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The subject matter of the proposed Settlement Agreements concerns matters for which the
Respondents may be disciplined as Approved Persons of the MFDA, pursuant to ss. 20 and
24.1.1 of By-law No. 1 of the MFDA.

PARTICULARS

1.
The Settlement Agreements concern allegations that between June 2003 and April 2007,
the Respondents:

(a) in their capacity as mutual fund salespersons, using training and information provided
by the Respondents’ Member and as a result of deficiencies in that training and
information, sold exempt market securities to clients who did not qualify as
accredited investors and whose risk tolerance was less than high, contrary to MFDA
Rule 2.1.1(c); and

(b) in their supervisory capacity as branch managers, by complying with a directive from
their Member and in so complying, failed to discern that the Member’s Compliance
department and its senior management were rendering themselves incapable of
conducting second-tier reviews necessary for the Member to properly supervise client
accounts, contrary to MFDA Rule 2.5.3(b)(i).

2.
The Settlement Agreements concern allegations for which the Respondents’ Member,
Farm Mutual Financial Services Inc., was previously disciplined. See: Reasons for Decision,
dated April 24, 2009, In the Matter of Farm Mutual Financial Services Inc., File No. 200812,
available on the MFDA’s website at www.mfda.ca. The allegations against the Respondents
occurred in the context of those Farm Mutual Financial Services Inc. deficiencies and, in large
part, as a result of those deficiencies.

3.
The hearing will be open to the public, unless and to the extent that the Hearing Panel
determines that all or part of the hearing should proceed in the absence of the public. If the
Hearing Panel accepts the Settlement Agreements, then copies of the decision of the Hearing
Panel and the Settlement Agreements will be made available to the public.
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DATED this 30th day of June, 2010.

“Jason D. Bennett”

Jason D. Bennett

Corporate Secretary

Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, Ontario, M5H 3T9
Telephone: 416-943-5836
Facsimile: 416-361-9781
Email: [email protected]

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