July 28, 2020 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing dated July 17, 2020 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 PEAK Investment Services 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 failed to ensure that on-site branch and sub-branch reviews occurred at each of the Respondent’s business locations in accordance with the requirements set out in MFDA Rules 2.5.1, MFDA Policy No. 5 and the Respondent’s policies and procedures;
- the Respondent failed to implement adequate policies, procedures and internal controls to ensure that it complied with its obligations to make mandatory reports to the MFDA on the Member Event Tracking System on a timely basis, contrary to MFDA Policy No. 6 and MFDA Rule 1.4(a); and
- the Respondent failed to conduct adequate or timely supervisory investigations after discovering potential misconduct by its Approved Persons, contrary to MFDA Rule 2.5.1 and MFDA Policy No. 3.
The settlement hearing will take place by electronic hearing on August 5, 2020 at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held. Members of the public who would like to participate should contact firstname.lastname@example.org to obtain particulars.
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 81,000 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.