MFDA Hearing Panel accepts settlement agreement with Investia Financial Services Inc.
TORONTO, Oct. 17, 2017 /CNW/ - A settlement hearing in the matter of Investia Financial Services Inc. ("Respondent") was held today in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel accepted the settlement agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $200,000; and
- costs in the amount of $20,000.
In the Settlement Agreement, the Respondent admitted that:
| a) |
between August 2011 and June 2012, it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the outside business activities of its Approved Person Bemelekot Tewahade ("Tewahade"), by failing to conduct a supervisory review of Tewahade after the Member had become aware that he was engaged in undisclosed outside business activities, contrary to MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 2.5.1 and 2.9; |
| b) |
between June 14, 2012 and July 23, 2012, it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the outside business activities of its Approved Person Russell Chang, contrary to MFDA Rules 1.1.1, 1.2.1(c) (now MFDA Rule 1.3), 2.5.1 and 2.9; |
| c) |
between November 2003 and September 2013, it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the outside business activities of its Approved Person Charles Albert Martin ("Martin"), by failing to conduct any follow up or supervisory review of Martin's outside business activities already disclosed to the Respondent by Martin, contrary to MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 2.5.1 and 2.9; |
| d) |
between 2006 and June 2014, it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the outside business activities of its Approved Person ST, by failing to conduct any follow up or supervisory review of ST's outside business activities already disclosed to the Respondent by ST, contrary to MFDA Rules 1.2.1(c) (now MFDA Rule 1.3), 2.5.1 and 2.9; |
| e) |
between March 2011 and October 2016, it failed to adequately supervise, and establish and maintain adequate internal controls pertaining to, the activities of its Approved Person DM after becoming aware that DM had altered Know-Your-Client ("KYC") information in at least 2 client accounts without the affected clients' knowledge or authorization, contrary to MFDA Rules 2.2.1, 2.2.4, 2.5.1 and 2.9; and |
| f) |
between March 2011 and October 2016, it failed to inform and report to at least two (2) clients and the MFDA that its Approved Person DM had altered KYC information in the clients' accounts without the clients' knowledge or authorization, contrary MFDA Rule 1.2.2 (now MFDA Rule 1.4) and MFDA Policy No. 6. |
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca.
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]
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