File No. 202049
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: Keith Bates
NOTICE OF SETTLEMENT HEARING
NOTICE is hereby given that an electronic hearing will be held before a hearing panel of the Central Regional Council (“Hearing Panel”) of the Mutual Fund Dealers Association of Canada (“MFDA”) on October 1, 2020 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 the settlement agreement (the “Settlement Agreement”) entered into between Staff of the MFDA and Keith Bates (the “Respondent”).
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 sections 20 and 24.1.1 of By-law No. 1 of the MFDA.
- The proposed Settlement Agreement concerns the allegations that the Respondent:
- on December 5, 2017, copied the signature page from an account form previously signed by the client and re-used the signature page to complete a new account form, and submitted the new account form to the Member for processing, contrary to MFDA Rule 2.1.1; and
- between May 2014 and October 2018, altered and used to process transactions, 96 account forms in respect of approximately 92 clients, by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
- between May 2014 and October 2018, obtained, possessed, and in some instances, used to process transactions, 117 pre-signed account forms in respect of approximately 33 clients, contrary to MFDA Rule 2.1.1; and
- between approximately January 2018 and November 2018, held blank bank cheque books of 2 clients in a client file maintained by the Respondent and thereby failed to abide by the standard of conduct required of an Approved Person, contrary to MFDA Rule 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.
DATED: Sep 3, 2020
Director, Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9