CIRO announces settlement hearing to take place in the matter of Andrew Tachauer

June 21, 2023 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”), now Canadian Investment Regulatory Organization (“CIRO”), commenced a disciplinary proceeding in respect of Andrew David Tachauer (the “Respondent”) by Notice of Hearing dated December 19, 2022 (“Notice of Hearing”).

As the result of a settlement agreement entered into between Staff of CIRO and the Respondent, a settlement hearing will take place electronically by videoconference before a Hearing Panel of CIRO’s Ontario District Hearing Committee on June 23, 2023, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held. Members of the public who would like to obtain further particulars should contact [email protected].

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to sections 20 and 24.1 of MFDA By-law No. 1 (now Mutual Fund Dealer Rules 7.3 and 7.4.1). In particular, the settlement agreement concerns the allegations that between December 2019 and February 2020, the Respondent failed to:

1. accurately record the essential facts relative to a client when opening a new client account for the client;
2. update a client’s Know-Your-Client (“KYC”) information when the Respondent became aware of material changes to the client’s circumstances and investment objective;
3. ensure that investments that he recommended that a client purchase using borrowed monies were suitable for the client, having regard to the client’s KYC information; and
4. report to the Member that a client used borrowed monies to invest;

contrary to the Member’s policies and procedures and MFDA Rules 2.2.1, 2.2.4(b), 2.1.1 and 1.1.2 (as it relates to MFDA Rule 2.5.1) (now Mutual Fund Dealer Rules 2.2.1, 2.2.4(b), 2.1.1, 1.1.2, and 2.5.1).

Settlement hearings of CIRO are typically held in the absence of the public pursuant section 20.5 of MFDA By-Law No. 1 (now Mutual Fund Dealer Rule 7.3.5) and Rule 15.2 (2) of the Mutual Fund Dealer Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in the Etobicoke, Ontario 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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