The Mutual Fund Dealers Association of Canada (MFDA) has accepted a settlement agreement with Maurice Gary Mailloux after he admitted that between October 13, 2015 and October 2019, he obtained, and in some instances, used to process transactions, 27 pre-signed account forms in respect of eight clients. 

The Hearing Panel of the MFDA first had to determine that it was satisfied regarding three considerations before it could accept an earlier settlement agreement. First, the agreed penalty had to be within an acceptable range taking into account similar cases. Secondly, the agreed penalty had to be fair and reasonable and should appear to be so to members of the public and industry. Thirdly, the agreed penalty should serve as a deterrent to the advisor and to industry. 

Advisor must comply with MFDA rules 

After determining that it was satisfied with these three considerations, the panel levied a fine of $15,000 against Mailloux, ordered him to pay costs of $5,000 and noted he had to comply in the future with the MFDA rule.

“The Respondent’s conduct was in violation of the standard of conduct codified by MFDA,” stated the panel. “This rule requires that Members and Approved Persons deal fairly, honestly, and in good faith with clients; observe high standards of ethics and conduct in the transaction of business; and refrain from engaging in any business conduct or practice which is unbecoming or detrimental to the public interest. A multitude of MFDA disciplinary cases have found conduct similar to that of the Respondent in our case to be a contravention of MFDA Rule 2.1.1. 

The panel noted that there was no evidence that Mailloux received any benefit from his conduct, nor were there any complaints from any of his clients.