MFDA Hearing Panel issues Reasons for Decision in the matter of WFG Securities Inc.

TORONTO, June 2, 2016 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Reasons for Decision in connection with a settlement hearing held in Toronto, Ontario on May 4, 2016 in the matter of WFG Securities Inc. (the "Respondent"). The Reasons for Decision relate to the Hearing Panel's acceptance of the settlement agreement (the "Settlement Agreement") entered into between the Respondent and Staff of the MFDA. In its Reasons for Decision dated June 2, 2016, the Hearing Panel confirmed the following sanctions imposed on the Respondent:

• a fine in the amount of $50,000;
• costs in the amount of $10,000;
• shall in the future comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 2.2.1, 2.2.2, 2.5.1, 5.1, and 5.3, and MFDA Policies No. 2 and No. 5.

In the Settlement Agreement, the Respondent admitted the following contraventions of the By-laws, Rules or Policies of the MFDA:

a)	between November 1, 2010 and January 31, 2013, the Respondent failed to record client information and/or transaction details for scholarship plans on its back office system and/or failed to maintain trade blotters that included scholarship plan transactions, and thereby failed to facilitate branch and head office supervision of the Heritage Plan client account activities, contrary to MFDA Rule 5.1 and MFDA Policy No. 2;
b)	between November 1, 2010 and January 31, 2013, the Respondent failed to establish, implement and maintain policies and procedures for the supervision of client activity in scholarship plans, thereby failing to ensure the handling of its business was in accordance with the By-laws, Rules and Policies and with applicable securities legislation, contrary to MFDA Rules 2.5.1, MFDA Policy No. 2 and MFDA Policy No. 5;
c)	between November 1, 2010 and January 31, 2013, the Respondent failed to require its Approved Persons to complete the Respondent's KYC forms and/or obtain KYC information for clients opening scholarship plans, thereby failing to use due diligence to learn the essential facts relative to each client and to each order or account accepted, contrary to MFDA Rules 2.2.1 and 2.2.2, and MFDA Policy No. 2.

Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent was registered as a mutual fund dealer in all provinces and territories.

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]