Order

WHEREAS on May 14, 2019, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Investors Group Financial Services Inc. (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated May 1, 2019 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;

AND WHEREAS Staff and the Respondent made a joint request for the abridgment of the ten day notice period required by Rule 15.2 of the MFDA Rules of Procedure in order to permit the hearing panel to proceed with the Settlement Hearing on May 17, 2019;

AND WHEREAS the Hearing Panel is of the opinion that, from May 2013 to July 2014, the Respondent failed to adequately query the suitability of the recommendation and sale of mutual funds subject to deferred sales charges to two elderly clients, contrary to MFDA Rules 2.2.1 and 2.5.1 and MFDA Policy No. 2; and

IT IS HEREBY ORDERED THAT the time for the Corporation to give notice of the settlement hearing required by Rule 15.2(1) of the MFDA Rules of Procedure is abridged pursuant to Rules 1.5 and 2.2(1)(a) of the MFDA Rules of Procedure;

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:

1. The Respondent shall pay a fine in the amount of $150,000 pursuant to section 24.1.2(b) of MFDA By-law No. 1;
2. The Respondent shall pay costs in the amount of $15,000 pursuant to section 24.2 of MFDA By-Law No. 1; and
3. If at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.