MFDA Hearing Panel accepts settlement agreement with Progressive Financial Strategy Capital Group Corp.
TORONTO, ON, Dec. 9, 2021 /CNW/ - A settlement hearing in the matter of Progressive Financial Strategy Capital Group Corp. (the "Respondent") was held electronically by videoconference 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 dated November 9, 2021 ("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 $10,000 ("Fine");
- costs in the amount of $5,000 ("Costs");
- payment of the Fine and Costs shall be made as follows:
- $5,000 (Costs) on December 9, 2021;
- $5,000 (Fine) on or before March 31, 2022;
- $5,000 (Fine) on or before June 30, 2022;
- shall provide monthly bank statements with its Form 1s for a period of one year following acceptance of the Settlement Agreement; and
- shall in the future comply with MFDA Rules 3.1.1, 3.1.2, 3.4.2(c), and 2.1.1.
In the Settlement Agreement, the Respondent admitted during the following periods: (i) January 9, 2018 to September 27, 2018; (ii) February 13, 2019 to April 1, 2019; and (iii) May 23, 2019 to September 3, 2019, it:
- without notifying the MFDA and receiving written approval prior to completing the transactions, transferred monies to, or made payments on behalf of, the Respondent's parent company, which would have or would reasonably be expected to have the effect of causing the Respondent's risk adjusted capital to fall to a level below zero;
- failed to maintain the its required minimum capital of $50,000 and its risk adjusted capital at a level above zero; and
- failed to immediately notify the MFDA when its risk adjusted capital had fallen to a level below zero, contrary to MFDA Rules 3.1.1, 3.1.2, 3.4.2(c), 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 80,000 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, Vice-President, Enforcement, 416-943-4619, [email protected]
Share this article