enforcement-banner

RULES OF PROCEDURE | PART F: MONITOR

[Pursuant to Sections 20 (Disciplinary Hearings), 24.1 (Power of Hearing Panels to Discipline), 24.3 (Applications in Exceptional Circumstances), 24.4 (Settlement Agreements) and 24.7 (Monitor) of MFDA By-law No.1]

RULE 26: APPOINTMENT OF MONITOR

26.1  Factors to Consider for Appointment of a Monitor

(1)  In exercising its discretion to appoint a monitor, a Panel may consider:

  1. the harm or potential harm to the investing public;
  2. the financial solvency of the Member;
  3. the adequacy of the Member’s internal controls and operating procedures;
  4. the failure of the Member to respond to requests by the Corporation to address deficiencies in its internal controls and operating procedures;
  5. the failure of the Member to comply with any agreement with the Corporation;
  6. the Member’s ability to maintain regulatory capital requirements;
  7. any previous suspension of the Member for failing to meet regulatory capital requirements;
  8. regulatory history of Member or key persons at Member;
  9. the costs to the Member associated with the appointment of the monitor; and
  10. any other relevant factors.

26.2  Terms, Conditions and Costs

(1)  In exercising its discretion to appoint a monitor, a Panel shall:

  1. appoint a monitor on such terms as it considers appropriate; and
  2. require that the Member pay the whole or part of the expenses related to a monitor.