CIRO Hearing Panel accepts settlement agreement with Bernard Phanthavong

TORONTO, July 12, 2023 /CNW/ - A settlement hearing in the matter of Bernard Kevin Phanthavong (the "Respondent") was held electronically by videoconference on March 27, 2023 in Winnipeg, Manitoba before a three-member Hearing Panel of the Manitoba District Hearing Committee of the Canadian Investment Regulatory Organization ("CIRO").

The Hearing Panel accepted the settlement agreement dated February 1, 2023 (the "Settlement Agreement"), between Staff of CIRO and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:

• shall be suspended from acting as a branch manager or in any supervisory capacity for a Dealer Member registered as a mutual fund dealer (formerly Members of the MFDA) for a period of two months commencing March 27, 2023;
• a fine in the amount of $7,500 ("Fine");
• costs in the amount of $5,000 ("Costs");
• shall successfully complete an industry course that is acceptable to Staff of the Corporation, within 12 months of the acceptance of the Settlement Agreement, pursuant to s. 7.4.1.1(f) of the Mutual Fund Dealer Rules; and
• shall in the future comply with Rules 2.1.1, and 2.1.4(2).

In the Settlement Agreement, the Respondent admitted that between February 2018 to June 2018, he altered client contact information on the Dealer Member's system without the knowledge or authorization of the client, which had the effect of interfering with the Member's supervision of the Respondent and impacted its ability to communicate with clients, contrary to Mutual Fund Dealer Rules 2.1.1 and 2.1.4(2).¹

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Winnipeg, Manitoba area.

Canadian Investment Regulatory Organization is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada, and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

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¹Pursuant to Mutual Fund Dealer Rule 1A(1) of the Corporation and s.14.6 of the Corporation By-Law No.1, contraventions of the MFDA By-laws, Rules and Policies that were applicable to the Respondent prior to January 1, 2023 may be enforced by the Corporation. The contraventions reference Mutual Fund Dealer Rules 2.1.1 and 2.1.4(2) which correspond to former MFDA Rules 2.1.1 and 2.1.4. Unless otherwise indicated, the wording of the current Mutual Fund Dealer Rules is the same as the wording of the regulatory requirements that were contravened. On June 30, 2021, amendments to former MFDA Rule 2.1.4 came into effect. As the conduct addressed in this proceeding pre-dated the amendment to that Rule, the contravention of Former MFDA Rule 2.1.4 that is addressed in this proceeding is of the version of former MFDA Rule 2.1.4 that was in effect between February 27, 2006 and June 30, 2021.

SOURCE Canadian Investment Regulatory Organization (CIRO)

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]; Mark Stott, Vice-President, Prairie Region, 403-215-8329, [email protected]