On May 23, 2018, the MFDA published, for a 90-day public comment period, proposed changes to the existing MFDA Penalty Guidelines, which have been in force, in their current form, since 2006 (see Bulletin #0749-P). The changes are intended to adopt a more principles-based approach to sanctioning and to move away from the recommendation of specific fine amounts and penalties.
Five submissions were received in response to the Request for Comments. Commenters generally expressed support for a move towards a principles-based approach to sanctioning, and a few commenters made other comments on specific aspects of the Guidelines.
The final form of the revised MFDA Sanction Guidelines is attached as Appendix “A” to this Bulletin, and is effective on November 15, 2018.
Also attached, as Appendix “B”, is a summary of comments received and the responses of MFDA staff.
The MFDA Sanction Guidelines are available under the Enforcement section of the Mutual Fund Dealers Association of Canada’s website at https://mfda.ca/enforcement/sanction-guidelines/.