MFDA Releases Enforcement Annual Report 2012

TORONTO, April 29, 2013 /CNW/ - The MFDA has released its first Enforcement Annual Report, which marks a new approach in MFDA Enforcement reporting and responds to increasing interest in our Enforcement activities.

The report includes information about how the MFDA Enforcement Department operates as well as summarized examples of key achievements and several significant disciplinary cases completed in 2012.

"Our core focus at the MFDA is to provide protection to mutual fund investors as well as strengthen public confidence in the Canadian mutual fund industry. This report demonstrates that we have made significant efforts to achieve both of these objectives in 2012 and outlines our strategy for continuing to do so going forward" said Mark Gordon, MFDA President & CEO.

Highlights of the MFDA's Enforcement Annual Report 2012 include:

• The MFDA commenced 48 hearings in 2012, an increase from 36 in 2011;
• Hearings concluded in 2012 resulted in fines of $3,278,750 and costs of $216,000 against Approved Persons, as well as fines of $330,000 and costs of $37,500 against Members;
• The MFDA revised its case screening guidelines to identify and prioritize complaints that involve seniors (defined as investors 60 years of age and over), as well as other vulnerable groups such as investors with limited resources or language, literacy or disability issues; and
• The MFDA implemented "Simplified Formal Proceedings", consisting of a fast track and a bulk track. The fast track procedure allows cases to proceed to a disciplinary hearing on an expedited basis in circumstances where there may be a risk of ongoing harm to the public or the nature of the matter otherwise requires that it be handled expeditiously. The bulk track procedure allows routine cases to be brought to a hearing using fewer resources, allowing the MFDA to increase its disciplinary response on certain types of cases that are of continuing concern.

The Enforcement Annual Report 2012 is now available on the MFDA's 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 116 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.

SOURCE: Mutual Fund Dealers Association of Canada

Shaun Devlin
Senior Vice-President, Member Regulation - Enforcement
416-943-4672 or [email protected]