December 18, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing dated December 15, 2017 regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.
The settlement agreement will be between Staff of the MFDA and Sun Life Financial Investment Services (Canada) Inc. (“Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns allegations that the Respondent:
- between April 1, 2013 and June 30, 2015, failed to adequately supervise leveraged accounts and concentration risk, contrary to MFDA Rules 2.5.1 and 2.2.1;
- between January 2010 and June 2015, failed to report client complaints, bankruptcy and termination of Approved Persons within 5 business days, contrary to MFDA Policy No. 4 and MFDA Policy No. 6;
- between June 2014 and June 3, 2016, failed to adequately supervise the suitability of the sale of DSC mutual funds to clients, contrary to MFDA Rules 2.5.1 and 2.2.1;
- between November 2015 and January 2016, failed to adequately supervise a trade, contrary to MFDA Rule 2.5.1; and
- commencing in 2002, failed to establish and maintain an adequate system of controls and supervision to ensure that it complied with securities legislation relating to internal dealer incentive and sales practices, and marketing and educational practices, contrary to MFDA Rules 2.5.1 and 2.1.1.
The settlement hearing is scheduled to take place on December 20, 2017, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available 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.