May 17, 2019 (Toronto, Ontario) – A settlement hearing in the matter of Investors Group Financial Services Inc. (“Respondent”) was held today 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 approved the settlement agreement dated May 1, 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 $150,000; and
- costs in the amount of $15,000.
In the Settlement Agreement, the Respondent admitted that from May 2013 to July 2014, it failed to adequately query the suitability of the recommendation and sale of mutual funds subject to deferred sales charges to two elderly clients, contrary to MFDA Rules 2.2.1 and 2.5.1 and MFDA Policy No. 2.
A copy of the Settlement Agreement is available on the MFDA website at www.mfd.ca. During the period described in the Settlement Agreement, the Respondent carried on business in all Canadian Provinces & Territories.
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.