MFDA Hearing Panel accepts settlement agreement with Professional Investments (Kingston) Inc.
TORONTO, Jan. 25, 2017 /CNW/ - A settlement hearing in the matter of Professional Investments (Kingston) Inc. (the "Respondent") was held on January 20, 2017 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 (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following penalties and costs were imposed:
- a fine in the amount of $60,000; and
- costs in the amount of $10,000.
In the Settlement Agreement, the Respondent admitted that:
| a) |
between February 2009 and March 2010, it failed to adequately supervise the activities of its former Approved Person to ensure that the Respondent was aware of and had approved all outside business activities that the Approved Person was engaged in and to ensure that all securities related business that the Approved Person engaged in was being conducted for the account of the Respondent and through the facilities of the Respondent, contrary to MFDA Rules 1.1.5, 2.5, 2.1.1 and MFDA Policy No. 2; and |
| b) |
between May 2009 and April 2013, it failed to conduct a reasonable supervisory investigation after receiving information that ought to have raised concerns that an Approved Person or a former Approved Person was engaged in unapproved outside business activities and had engaged in securities related business that was not carried on for the account of the Respondent or processed through the facilities of the Respondent, contrary to MFDA Rules 1.1.5, 2.5 and 2.1.1. |
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
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Charles Toth, Director, Litigation, 416-943-4619, [email protected]
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