MFDA Hearing Panel approves four settlement agreements

TORONTO, Sept. 1, 2017 /CNW/ - On August 31, 2017, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following four (4) proceedings, the particulars of which are:

Robert Rice

A settlement hearing in the matter of Robert Grant Rice ("Rice") was held on August 31, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Rice, as a consequence of which the following sanctions were imposed:

• a fine in the amount of $11,500;
• costs in the amount of $2,500; and
• in future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Rice admitted that between 2005 and May 2015, he obtained, possessed, and in some instances, used to process transactions, 18 pre-signed account forms in respect of nine (9) clients, contrary to MFDA Rule 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, Rice carried on business in the London, Ontario area.

Salvatore Catalano

A settlement hearing in the matter of Salvatore Catalano ("Catalano") was held on August 31, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Catalano, as a consequence of which the following sanctions were imposed:

• a fine in the amount of $5,000;
• costs in the amount of $2,500; and
• in future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Catalano admitted that between February 2014 and December 2014, he obtained, possessed and, in some instances, used to process transactions, 18 pre-signed account forms in respect of nine (9) clients, contrary to MFDA Rule 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, Catalano carried on business in the Woodbridge, Ontario area.

Terry Barrett

A settlement hearing in the matter of Terry Edward Barrett ("Barrett") was held on August 31, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Barrett, as a consequence of which the following sanctions were imposed:

• a fine in the amount of $5,000 ("Fine");
• costs in the amount of $2,500 ("Costs");
• the Fine and Costs shall be paid by certified funds as follows:

1. $2,500 (Costs) upon entering into the Settlement Agreement;
2. $833.33 on the last business day of September, 2017;
3. $833.33 on the last business day of October, 2017;
4. $833.33 on the last business day of November, 2017;
5. $833.33 on the last business day of December, 2017
6. $833.33 on the last business day of January, 2018; and
7. $833.33 on the last business day of February, 2018.

• if Barrett fails to make any of the payments described above then:

1. any outstanding balance of the Fine and Costs owed by Barrett shall immediately become due and payable to the MFDA;
2. Barrett shall immediately be suspended from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine and Costs owed by Barrett is paid to the MFDA; and

• in future shall comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Barrett admitted that:

1. on or around July 25, 2014, he obtained, possessed, and used to process a transaction, one (1) pre-signed account form in respect of one (1) client, contrary to MFDA Rule 2.1.1;
2. on or about January 24, 2012, he failed to have a client initial alterations to an account form that the client had made after the client had signed the account form, contrary to MFDA Rule 2.1.1; and
3. between 2013 and 2014, on two (2) occasions, he failed to accurately respond to the Member's annual compliance questionnaire by incorrectly affirming that he did not accept or solicit pre-signed account forms or maintain pre-signed account forms in client files, contrary to MFDA Rule 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, Barrett carried on business in the Uxbridge, Ontario area.

Ping-Chung Peter Chiu

A settlement hearing in the matter of Ping-Chung Peter Chiu ("Chiu") was held on August 31, 2017 at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Chiu, as a consequence of which the following sanctions were imposed:

• a fine in the amount of $12,500;
• a suspension for a period of three (3) months from acting in the capacity of branch manager;
• costs in the amount of $2,500;
• in future shall comply with MFDA Rules 2.3.1, 2.2.4, 2.5.1, 1.1.2 and 2.1.1.

In the Settlement Agreement, Chiu admitted that:

1. on or about December 16, 2015, he changed a client's banking information based upon email instructions received from a third party who, without Chiu's knowledge, had gained unlawful access to the client's email, without first obtaining a signed account form from the client authorizing the change, contrary to the Member's policies and procedures and MFDA Rules 2.2.4,  1.1.2, 2.5.1, and 2.1.1;
2. on December 31, 2015 and January 18, 2016, he processed two (2) redemptions in a client account based upon email instructions received from a third party who, without Chiu's knowledge, had gained unlawful access to the client's email, without taking adequate steps to verify that he was communicating with the client as required by the Member's policies and procedures, contrary to MFDA Rules 2.5.1, 1.1.2 and 2.1.1; and
3. on January 18, 2016, he processed a redemption in a client account without obtaining instructions in respect of which mutual funds to redeem and in what amounts, thereby engaging in discretionary trading, contrary to MFDA Rules 2.3.1, 2.5.1, 1.1.2, 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, Chiu carried on business in the Richmond Hill, Ontario 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 83,000 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, Director, Litigation, 416-943-4619, [email protected]

Related Links

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