June 30, 2020 (Toronto, Ontario) – A settlement hearing in the matter of Keybase Financial Group Inc. (“Respondent”) was held on June 29, 2020 in Toronto, Ontario by electronic hearing 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 May 27, 2020 (“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 $35,000;
- costs in the amount of $5,000; and
- shall in the future comply with its complaint handling duties and requirements, pursuant to MFDA Rules 2.11 and Rule 2.1.1, and MFDA Policy No. 3.
In the Settlement Agreement, the Respondent admitted that between 2011 and 2019, it failed to handle 13 client complaints fairly and properly, contrary to MFDA Rules 2.11 and 2.1.1, and the complaint handling duties and requirements under MFDA Policy No. 3.
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.