Order

WHEREAS on July 17, 2020, 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 PEAK Investment Services Inc. (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated July 30, 2020 (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 the Notice of Settlement Hearing announcing the Settlement Hearing in this case was issued on July 17, 2020 but published on July 28, 2020 less than 10 days prior to the Settlement Hearing;

AND WHEREAS on the basis of admissions made by the Respondent in the Settlement Agreement, the Hearing Panel is of the opinion that:

1. prior to December 1, 2016, the Respondent failed to ensure that, among other things, on-site branch and sub-branch reviews occurred at each of the Respondent’s business locations as required in accordance with the requirements set out in MFDA Policy No. 5, MFDA Rule 2.5.1 and the Respondent’s policies and procedures;
2. prior to February 1, 2018, the Respondent failed to implement adequate policies, procedures and internal controls to ensure that it complied with its obligations to make mandatory reports to the MFDA on the Member Event Tracking System (“METS”) on a timely basis, contrary to MFDA Policy No. 6 and MFDA Rule 1.4(a); and
3. between 2011 and 2017, the Respondent failed to conduct adequate or timely supervisory investigations after discovering potential misconduct by its Approved Persons, contrary to MFDA Rule 2.5.1 and MFDA Policy No.  3.

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

1. The time required for publication of the Notice of Settlement Hearing is abridged from 10 days to 8 days pursuant to Rule 2.2(1)(a);
2. The Respondent shall pay a fine in the amount of $75,000 on the date of this Order, pursuant to s. 24.1.2(b) of MFDA By-law No. 1;
3. The Respondent shall pay costs to the MFDA in the amount of $15,000 on the date of this Order, pursuant to s. 24.2 of MFDA By-law No. 1; and
4. 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.