TORONTO, Jan. 21, 2013 /CNW/ - A Settlement Hearing in the matter of
Portfolio Strategies Corporation (the "Respondent") was held on January
18, 2013 in Calgary, Alberta before a Hearing Panel of the MFDA's
Prairie Regional Council. The Hearing Panel accepted the Settlement
Agreement between MFDA Staff and the Respondent, as a consequence of
which the Respondent:
had paid a fine of $35,000;
has paid costs of $5,000; and
shall comply with all MFDA By-laws, Rules and Policies, and all
applicable securities legislation and regulations made thereunder,
including MFDA Rules 2.2.1, 2.5, and 2.10, and MFDA Policy No. 2.
In the Settlement Agreement, the Respondent admitted that between
December 1, 2006 and April 2009:
the Respondent's head office compliance staff failed to adequately
supervise some trades, contrary to MFDA Rules 2.2.1, 2.5 and MFDA
Policy No. 2; and
the Respondent failed to establish adequate policies and procedures to
supervise leveraging recommendations, and also failed to maintain, in
respect of some leveraged trades, adequate records of trade
supervision, including records of trades reviewed, inquiries made,
responses received and resolutions achieved, contrary to MFDA Rules
2.2.1, 2.5, 2.10 and MFDA Policy No. 2.
The Hearing Panel advised that it will issue written reasons for its
decision in due course. A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund
dealers, regulating the operations, standards of practice and business
conduct of its 115 Members and their approximately 80,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
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