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For further information, please contact:

Charles Toth
Vice President, Enforcement

MFDA issues Notice of Settlement Hearing in respect of GP Wealth Management Corporation

December 28, 2022 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (the “MFDA”) announced that it has issued a Notice of Settlement Hearing dated December 22, 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 GP Wealth Management Corporation (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 allegations that the Respondent, between June 2013 and at least May 2016, failed to adequately detect and query uniformity in the Know Your Client information recorded by former Approved Person AF for 88 leveraged accounts transferred to the Respondent, 23 new leveraged accounts opened at the Respondent, and 5 loan renewals in existing accounts at the Member, contrary to MFDA Rules 2.2.1[1] and 2.5.1 and MFDA Policy No. 2.[2]

The settlement hearing will take place electronically by videoconference on February 2, 2023, 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 hearings@mfda.ca.

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.

A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondent conducted business in the Mississauga, Ontario area.

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.

[1] Effective December 31, 2021, MFDA Rule 2.2.1 was amended.  As the Respondent engaged in the alleged misconduct addressed in this proceeding prior to December 31, 2021, Staff is relying on the wording in the version of MFDA Rule 2.2.1 that was in effect prior to the amendments. 

[2] Effective September 12, 2013 and subsequently thereafter, MFDA Policy No. 2 was amended.  As the Respondent engaged in the alleged misconduct addressed in this proceeding beginning June 2013, Staff is relying on the wording in the versions of MFDA Policy No. 2 that was in effect from time to time during the period of the alleged misconduct. 

DM 900313