March 10, 2016 (Toronto, Ontario) – Today the MFDA released its 2015 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.
The report includes information about how the MFDA Enforcement Department operates, highlights key achievements, and describes significant disciplinary cases completed in 2015.
“I am pleased to present the 2015 Annual Enforcement Report which describes both the disciplinary activities of the Enforcement Department and the proactive guidance and training that it provides to Members and Approved Persons as part of the MFDA’s overall Member education efforts,” said MFDA President and CEO Mark Gordon. “Investors can be confident that we are focused on our investor protection mandate, and will continue to protect investors by aggressively pursuing enforcement action against those who breach MFDA Rules.”
Highlights of the MFDA’s 2015 Annual Enforcement Report include:
- 69 proceedings commenced against Members and Approved Persons in 2015 which is the highest number of proceedings commenced by the MFDA in any year to date.
- 65 hearings concluded in 2015, resulting in total fines of $5,389,650 and total costs of $479,500 against Members and Approved Persons, and 19 permanent prohibitions and six suspensions against Approved Persons.
- A focus on signature falsification cases with 38 of 69 commenced disciplinary proceedings involving this allegation.
- 40% of proceedings commenced in 2015 involved seniors or vulnerable persons (excluding signature falsification cases that do not involve a client complaint or harm to a client).
- The creation of a specialized unit for dealing with fairness and timeliness of Member complaint handling.
The 2015 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 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.