- The proposed Settlement Agreement concerns allegations that:
- commencing in December 2008, the Respondent failed to conduct a reasonable supervisory investigation in response to information that it had received that an Approved Person was engaging in actual or potential misconduct and failed to investigate the full nature and extent of the potential misconduct, or take other supervisory and disciplinary measures warranted by the results of its investigation, contrary to MFDA Rules 2.1.1, 2.1.4, 1.1.5, 2.5 and MFDA Policy No. 2;
- commencing in December 2008, after becoming aware that an actual or potential conflict of interest had arisen as a result of an Approved Person’s appointment as estate trustee of the estate of a client, the Respondent failed to take steps to ensure that the resulting conflict was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.1, 2.1.4, 2.3.1, 1.1.5 and 2.5.
- between August 5, 2008 and April 2010, the Respondent failed to conduct adequate trade supervision or implement sufficient internal controls to ensure the proper handling of client accounts, contrary to MFDA Rules 1.1.5, 2.2.1, 2.5 and MFDA Policy No. 2.
- after receiving a client complaint on September 12, 2012, the Respondent failed to handle the complaint fairly, contrary to MFDA Rules 2.1.1, 2.1.4, 1.1.5, 2.11 and MFDA Policy No. 3.
- The hearing is open to the public, unless and to the extent that the Hearing Panel determines that all or part of the hearing should proceed in the absence of the public. If the Hearing Panel accepts the Settlement Agreement, then copies of the decision of the Hearing Panel and the Settlement Agreement will be made available to the public.
Sarah RickardSarah RickardDirector of Regional Councils
Mutual Fund Dealers Association of Canada
121 King St. West, Suite 1000
Toronto, ON M5H 3T9
E-mail: [email protected]