February 14, 2019 (Toronto, Ontario) – A settlement hearing in the matter of De Thomas Wealth Management Corp. (“Respondent”) took place today in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated February 6, 2019 (“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 $40,000; and
- costs in the amount of $10,000.
In the Settlement Agreement, the Respondent admitted that:
- commencing in June 2011, it failed to conduct an on-site compliance review of every sub-branch location at least once every three years, contrary to MFDA Policy No. 5 and MFDA Rule 2.5.1; and
- between June 2016 and March 2017, it failed to adequately supervise an Approved Person by approving and permitting the Approved Person to sell syndicated mortgages outside of the Member, contrary to MFDA Rules 1.1.1, 1.3 and 2.5.
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.