The subject matter of the proposed Settlement Agreement concerns matters for which the Respondent may be disciplined as an Approved Person of the MFDA, pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA.
Sarah RickardSarah RickardDirector of Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9
E-mail: [email protected]
- The proposed Settlement Agreement concerns the allegations that:
- on or about December 16, 2015, the Respondent changed a client’s banking information based upon email instructions received from a third party who, without the Respondent’s knowledge, had gained unlawful access to the client’s email, without first obtaining a signed account form from the client authorizing the change, contrary to the Member’s policies and procedures and MFDA Rules 2.2.4, 1.2, 2.5.1, and 2.1.1;
- on December 31, 2015 and January 18, 2016, the Respondent processed two redemptions in a client account based upon email instructions received from a third party who, without the Respondent’s knowledge, had gained unlawful access to the client’s email, without taking adequate steps to verify that he was communicating with the client as required by the Member’s policies and procedures, contrary to MFDA Rules 2.5.1, 1.1.2 and 2.1.1; and
- on January 18, 2016, the Respondent processed a redemption in a client account without obtaining instructions in respect of which mutual funds to redeem and in what amounts, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1, 2.5.1, 1.1.2, and 2.1.1.
- MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure.