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Charles Toth
Vice President, Enforcement

MFDA Hearing Panel accepts settlement agreement with Queen Financial Group Inc.

December 19, 2022 (Toronto, Ontario) – A settlement hearing in the matter of Queen Financial Group Inc. (the “Respondent”) was held electronically by videoconference on December 15, 2022 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 dated December 12, 2022 (the “Settlement Agreement”), between Staff of the MFDA and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:

  • a fine in the amount of $30,000; and
  • costs in the amount of $7,500.

In the Settlement Agreement, the Respondent admitted that between January 1, 2017 and April 6, 2020, it approved and allowed the sale of seven 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)[1] and 2.1.1.

A copy of the Settlement Agreement is available on the MFDA 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 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]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 this proceeding pre-dated the Rule amendments, the contravention in this proceeding is of the version of Rule 2.2 that pre-dated the December 31, 2021 amendments.

DM 900126