November 24, 2021 (Toronto, Ontario) – A settlement hearing in the matter of Quadrus Investment Services Ltd. (the “Respondent”) was held electronically by videoconference on November 23, 2021 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 November 15, 2021 (“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 $600,000;
- costs in the amount of $25,000; and
- shall in the future comply with MFDA Rules 2.5.1 and 2.1.1.
In the Settlement Agreement, the Respondent admitted that from 2002 to 2018, it failed to establish and maintain an adequate system of controls and supervision to ensure that it complied with securities legislation including relating to internal dealer incentive and sales practices, contrary to MFDA Rules 2.5.1 and 2.1.1.
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 80,000 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.