December 14, 2022 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (the “MFDA”) announced that it has issued a Notice of Settlement Hearing dated December 13, 2022, 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 Queen Financial Group Inc. (the “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 the allegation that the Respondent approved and allowed the sale of certain exempt products (the “Products”) without using adequate due diligence to understand the material attributes, features and risks of the Products and ensuring that the Products offered to clients were suitable, contrary to MFDA Rules 2.2.1(c) and 2.1.1.
The settlement hearing will take place electronically by videoconference on December 15, 2022, commencing at 1:00 p.m. (Eastern), or as soon thereafter as the matter can be held. Members of the public who would like to obtain further particulars should contact email@example.com.
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 76,695 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.
On December 31, 2021, MFDA Rule 2.2 was amended to conform with client focused reforms to National Instrument 31-103. As the conduct addressed in the Settlement Agreement in this case pre-dated the amendment to the Rules, all references in the Settlement Agreement to MFDA Rule 2.2 concern the version of the Rule that pre-dated the December 31, 2021 amendments.