MFDA Publishes Payment of Fines Status Report
TORONTO, Oct. 29, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada (the "MFDA") has begun publishing fine payment status for all Respondents ordered to pay a fine by MFDA Hearing Panels. The fine payment status can be found under Completed Cases within the Enforcement section of the MFDA website. Fine payment status will be updated quarterly on an ongoing basis.
"This new process is another step towards the MFDA's goal of ensuring we have firm, fair and transparent regulatory processes. It will increase transparency relating to the MFDA's fine collection rate, and allow Canadian investors to obtain further important background information about Approved Persons and Members," said MFDA President and Chief Executive Officer Mark Gordon.
In addition to fines, Respondents who are found to have violated regulatory requirements may be sanctioned by the MFDA with prohibitions, suspensions or other non-monetary sanctions such as a requirement to re-write specific industry courses. The MFDA provides information for Canadian investors on how to check the disciplinary history and registration status of an advisor through the Check an Advisor section of the MFDA website. Further information on the MFDA enforcement process and recent activities can be found in the Annual Enforcement Report 2013.
The MFDA has powers to collect fines from Members and Approved Persons who remain in the industry, and has to date always collected those fines. However, the MFDA does not have the ability under statute to collect fines from former Members and Approved Persons who are no longer registered, except in the province of Alberta where staff makes all reasonable collection efforts. The MFDA also pursues options for collecting costs from former Members or Approved Persons as applicable law may permit.
During the MFDA fiscal year ending June 30, 2014, MFDA Hearing Panels imposed fines of $54,500 against Approved Persons who are currently registered, all of which have been collected. Hearing Panels also imposed fines of $3,642,500 against Approved Persons who are no longer registered, of which $51,000 has been collected. In most of the latter cases, those Approved Persons are also subject to permanent prohibitions or suspensions ordered as part of MFDA disciplinary proceedings.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 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
Ian Strulovitch, Director, Public Affairs, (416) 943-7425 or [email protected]
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