May 26, 2016 (Toronto, Ontario) – Today the MFDA released its 2016 Annual Enforcement Report which highlights the MFDA’s enforcement activities in combating unsuitable investment recommendations, falsification, unauthorized outside business activities, supervision and complaint handling deficiencies and other securities regulatory breaches.
The report includes information about how the MFDA Enforcement Department operates, highlights key achievements, and describes significant disciplinary cases completed in 2016.
“I am pleased to present the Annual Enforcement Report for 2016 which highlights the significant increase in enforcement activity over the past year and demonstrates the MFDA’s continued commitment to protect investors and hold those who breach MFDA rules accountable for their misconduct,” said MFDA President and CEO Mark Gordon.
Highlights of the MFDA’s 2016 Annual Enforcement Report include:
- 111 proceedings commenced against Members and Approved Persons in 2016 which is the highest number of proceedings commenced by the MFDA in any year to date.
- 85 hearings concluded in 2016, resulting in total fines of $21,104,750 and $496,000 in costs against Members and Approved Persons, and 22 permanent prohibitions and 26 suspensions against Approved Persons.
- A continued focus on Member supervision and complaint handling with 11 proceedings issued against Members for breaches of these requirements.
- A continued focus on signature falsification cases with 60 of 111 commenced disciplinary proceedings involving this allegation.
The 2016 Annual Enforcement Report 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 Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.