December 19, 2016 (Toronto, Ontario) – A settlement hearing in the matter of International Capital Management Inc. (the “Respondent”) was held on December 16, 2016 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement (the “Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following penalties and costs were imposed:
- a fine in the amount of $30,000;
- costs in the amount of $5,000; and
- shall in the future comply with MFDA Rule 3.4.2.
In the Settlement Agreement, the Respondent admitted that between June 2012 and September 2013, while the Respondent was designated in Early Warning, the Respondent contravened the early warning requirements set out in MFDA Rule 3.4.2 by making payments without prior written approval from the MFDA for:
- salary and override payments to Officers of the Respondent from June 2012 to August 2013;
- payments to I-Boss from June 2012 to December 2012; and
- a payment to HoldCo in March 2013.
all of which is contrary to MFDA Rule 3.4.2(b)(iv)(C).
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent carried on business in the Provinces of Alberta and Ontario.
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.