CIRO Hearing Panel accepts settlement agreement with Andrew Tachauer

August 11, 2023 (Toronto, Ontario) – A settlement hearing in the matter of Andrew David Tachauer (the “Respondent”) was held electronically by videoconference on June 23, 2023 in Toronto, Ontario before a three-member Hearing Panel of the Ontario District Hearing Committee of the Canadian Investment Regulatory Organization (“CIRO”).

The Hearing Panel accepted the settlement agreement dated June 19, 2023 (the “Settlement Agreement”), between Staff of CIRO and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:

• a fine in the amount of $40,000 (“Fine”);
• costs in the amount of $5,000 (“Costs”);
  • $25,000 (costs and fine) payable in certified funds on the date of this Order;
  • monthly payments of $3,333.33 (fine) in certified funds payable on or before the first day of every month for 6 consecutive months commencing on the first day of August, 2023.

In the Settlement Agreement, the Respondent admitted 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^[1], 2.2.4(b)^[2], 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).

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 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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