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Bulletin #0015-E

Cheque Fraud Reported

Mutual Fund Dealers Association of Canada
Association canadienne des courtiers de fonds mutuels
121 King Street West, Suite 1600, Toronto, Ontario, M5H 3T9
TEL: 416-361-6332 FAX: 416-943-1218 WEBSITE: www.mfda.ca
Contact:
Vanessa
M.
Gardiner
BULLETIN #0015 – E
Manager, Complaints and Investigations
April 3, 2003
Phone: 416-943-4615
E-mail : vgardiner@mfda.ca


MFDA Bulletin
Enforcement
For Distribution to Relevant Parties within your Firm
Cheque Fraud Reported
The MFDA has recently been informed that several attempts have been made to clear fraudulent
cheques through an affiliated company of a MFDA Member by unknown persons. These cheques
appeared to be valid but upon closer inspection and through reconciliation of bank accounts, they
were found to be fraudulent.
MFDA Rule 2.9 requires that “Every Member shall establish and maintain adequate internal
controls as prescribed by the Corporation from time to time”.
MFDA Internal Control Policy Statement 4 – Cash and Securities outlines the necessity to
safeguard both firm and client securities and cash. Among other things, conducting the required
monthly cheque reconciliation and proper segregation of duties are intended to help Members
prevent and detect theft and fraud.
Vanessa Gardiner
Manager, Complaints and Investigations
Enforcement Branch
(doc. #13223)