MFDA Hearing Panel accepts settlement agreement with Joshua O'Brien

TORONTO, Dec. 9, 2021 /CNW/ - A settlement hearing in the matter of Joshua O'Brien (the "Respondent") was held today by electronic hearing in St. John's, Newfoundland and Labrador before a three-member Hearing Panel of the Atlantic Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel accepted the settlement agreement dated December 1, 2021 ("Settlement Agreement"), between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:

• a prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of two years;
• a fine in the amount of $5,000, payable in instalments as follows:
• $833.34 on June 9, 2022;
• $833.34 on July 9, 2022;
• $833.33 on August 9, 2022;
• $833.33 on September 9, 2022;
• $833.33 on October 9, 2022;
• $833.33 on November 9, 2022; and
• costs in the amount of $5,000.

In the Settlement Agreement, the Respondent admitted that:

1. between September 6, 2018 and January 7, 2019, he:
1. 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
2. signed trade forms to process the trades recommended to 22 clients by the unregistered individual without communicating with the clients or otherwise using the necessary due diligence to ensure that the recommendations were suitable and authorized; thereby facilitating stealth advising by the unregistered individual, contrary to the Member's policies and procedures and MFDA Rules 1.1.1(c), 2.2.1, 2.1.1, 2.5.1 and 1.1.2; and
2. between September 6, 2018 and January 7, 2019, in his capacity as branch manager, he 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(f) and 2.1.1.

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 conducted business in the Labrador City, Newfoundland and Labrador area.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.

SOURCE Mutual Fund Dealers Association of Canada

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]

Related Links

https://mfda.ca/