CALGARY, June 20 /CNW/ - A Settlement Hearing in the matter of Portfolio
Strategies Corporation ("PSC") was held yesterday before a Hearing Panel of
the Prairie Regional Council of the Mutual Fund Dealers Association of Canada
The Hearing Panel approved a Settlement Agreement entered into between
the MFDA and PSC. Under the terms of the settlement, the Hearing Panel issued
a reprimand and imposed a fine in the amount of $5,000 on PSC. The Settlement
Agreement concerned the failure of PSC to create and maintain adequate records
of a call and its response to the call from a client concerning the conduct of
its Approved Person, Rodney Jacobson (whom PSC later terminated for cause), as
well as the failure of PSC between November 2004 and December 2006 to conduct
a reasonable supervisory investigation into Jacobson's conduct in response to
a client complaint to the MFDA. Jacobson was the subject of a previous MFDA
The Hearing Panel accepted the fact that PSC was not aware of Jacobson's
misconduct at the time that it occurred and there is no evidence that PSC
benefited in any way from Jacobson's misconduct. There is also no evidence
that any additional client harm resulted from PSC's misconduct. Prior to the
Settlement Hearing, PSC made amendments to its policies and procedures and
hired additional experienced compliance staff to address deficiencies that may
have partially accounted for its misconduct in this case.
A copy of the Settlement Agreement is available on the MFDA's website.
The Hearing Panel will issue its Decision and Reasons in due course.
The Mutual Fund Dealers Association of Canada is the self-regulatory
organization for Canadian mutual fund dealers. The MFDA regulates the
operations, standards of practice and business conduct of its 159 Members and
their approximately 75,000 Approved Persons with a mandate to protect
investors and the public interest.
For further information:
For further information: Shaun Devlin, Vice-President, Enforcement,
(416) 943-4672 or email@example.com