File No. 202078
Re: Joshua O’Brien
NOTICE OF SETTLEMENT HEARING
NOTICE is hereby given that an electronic hearing will be held before a hearing panel of the Atlantic Regional Council (the “Hearing Panel”) of the Mutual Fund Dealers Association of Canada (the “MFDA”) on October 6, 2021 at 10:00 a.m. (Atlantic) 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 Joshua O’Brien (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 allegations that between September 6, 2018 and January 7, 2019:
- the Respondent:
- allowed an unregistered individual to meet with clients in the absence of the Respondent in order to discuss and recommend trades to the clients; and
- signed the trade forms to process the trades recommended to the clients by the unregistered individual without the Respondent having communicated with the clients or otherwise performed the necessary due diligence to ensure that the recommendations were suitable and in keeping with the clients’ investment objectives;
thereby facilitating stealth advising by the unregistered individual, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1(c), 1.1.2, 2.2.1, 2.5.1 and 2.1.1; and
- in his capacity as branch manager, the Respondent failed to adequately supervise the activities at a branch to ensure compliance with the By-laws, Rules and Policies and with applicable securities legislation by the Member and its Approved Persons, contrary to MFDA Rules 2.5.5 and 2.1.1.
- the Respondent:
- 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. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at mfda.ca.
DATED: Aug 23, 2021
Director, Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9