June 1, 2021 (Toronto, Ontario) – Today the MFDA released its 2020 Annual Enforcement Report which highlights the MFDA’s enforcement activities in combating unsuitable investment recommendations, falsification, unauthorized outside business activities and other securities regulatory breaches.
“I am pleased to present the Annual Enforcement Report for 2020 which sets out the activities of the Enforcement Department which, despite the challenges brought on by the COVID-19 pandemic, was able to continue to effectively fulfill its mandate to protect investors and to hold those who breach MFDA rules accountable for their misconduct,” said MFDA President and CEO Mark Gordon.
The report includes information about how the MFDA Enforcement Department operates, its key achievements, and describes significant disciplinary cases completed in 2020.
Highlights of the MFDA’s 2020 Annual Enforcement Report include:
- 79 disciplinary proceedings commenced;
- Concluded hearings resulted in 16 permanent prohibitions and 24 suspensions against Approved Persons and total fines of $3,350,602 and $369,501 in costs against Members and Approved Persons;
- The completion of a hearing against a Member for deficiencies in its complaint handling, which resulted in the Member paying compensation to clients and retaining consultants to address root causes in its complaint handling procedures;
- 30% of proceedings commenced in 2020 involved seniors or vulnerable persons.
The 2020 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 80,000 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.