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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. 201659

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: IPC Investment Corporation

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 at the offices of the MFDA, located at 121 King Street West,
Suite 1000, Toronto, Ontario on December 13, 2016 at 10:00 a.m. (Eastern), or as soon thereafter
as the matter can be heard, to consider whether, pursuant to section 24.4 of By-law No. 1 of the
MFDA, the Hearing Panel should accept the settlement agreement (the “Settlement Agreement”)
entered into between Staff of the MFDA and IPC Investment Corporation (the “Respondent”).

The subject matter of the proposed Settlement Agreement concerns matters for which the
Respondent may be disciplined as a Member of the MFDA, pursuant to sections 20 and 24.1.2 of
By-law No. 1 of the MFDA.


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PARTICULARS

1.
The proposed Settlement Agreement concerns allegations that:

a)
from about May 10, 2013 to September 23, 2013, the Respondent failed to report
Approved Person Jeffrey Mushaluk’s suspected prohibited trading activities on
the MFDA METS reporting system and failed to conduct a timely supervisory
investigation of those activities, contrary to MFDA Rule 2.5.1, Rule 2.1.1, and the
reporting requirements set out under MFDA Policy No. 6;

b)
from about 2010 to April 2014, the Respondent failed to adequately supervise
Approved Person JEC’s investment recommendations to clients, which resulted in
the clients holding investments concentrated in gold-related sector funds, thus
failing to ensure that each order accepted or recommendation made for the clients’
accounts were suitable for the clients based on the essential facts relative to the
client and any investments within the account, contrary to MFDA Rule 2.2.1;

c)
from in or about 2010 to April 2014, the Respondent failed to adequately
supervise concentration risk in the accounts of some of Approved Person JEC’s
clients contrary to MFDA Rule 2.2.1; and

d)
from about August 2012 to January 2014, the Respondent failed to take
appropriate supervisory action regarding Approved Person JEC’s non-compliance
with Member directives, thus failing to ensure the handling of its business was in
accordance with MFDA By-laws, Rules and Policies and with applicable
securities legislation, contrary to MFDA Rule 2.5.1 and Rule 2.1.1.

2.
The hearing is 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 Agreement, then copies of the decision of the Hearing
Panel and the Settlement Agreement will be made available to the public.
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DATED this 11th day of October, 2016.

“Sarah Rickard”
Sarah Rickard
Director of Regional Councils
Mutual Fund Dealers Association of Canada
121 King Street West, Suite 1000
Toronto, ON M5H 3T9
Telephone: 416-945-5143
Facsimile: 416-361-9781
Email: [email protected]

DM 507428 v1
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