CIRO Hearing Panel issues Reasons for Decision in the matter of Megan Stokes

TORONTO, Nov. 10, 2023 /CNW/ - A Hearing Panel of the Canadian Investment Regulatory Organization ("CIRO"), has issued its Reasons for Decision dated October 19, 2023 ("Reasons for Decision"), in connection with a settlement hearing held electronically by videoconference in Toronto, Ontario on March 23, 2023 in the matter of Megan Lynn Stokes (the "Respondent").

In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, 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 23, 2023;
• shall pay a fine in the amount of $7,500;
• shall pay costs in the amount of $5,000; and
• 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.

In the Settlement Agreement, the Respondent admitted that between June 2019 and January 2020, she 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 Reasons for Decision is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Uxbridge, Ontario area.

The Canadian Investment Regulatory Organization (CIRO) 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 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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¹ Pursuant 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)

Joanna Nicholson, Manager, Public Affairs, [phone], [email protected]