MFDA issues Notice of Settlement Hearing in respect of IPC Investment Corporation

TORONTO, Nov. 8, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA's Central Regional Council.

The settlement agreement will be between Staff of the MFDA and IPC Investment Corporation (the "Respondent") and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns the allegation that

a)  

from about May 10, 2013 to September 23, 2013, the Respondent failed to report Approved Person Jeffrey Mushaluk's suspected prohibited trading activities on the MFDA METS reporting system and failed to conduct  a timely  supervisory investigation of those activities, contrary to MFDA Rule 2.5.1, Rule 2.1.1, and the reporting requirements set out under MFDA Policy No. 6;



b)   

from about 2010 to April 2014, the Respondent failed to adequately supervise Approved Person JEC's investment recommendations to clients, which resulted in the clients holding investments concentrated in gold-related sector funds, thus failing to ensure that each order accepted or recommendation made for the clients' accounts were suitable for the clients based on the essential facts relative to the client and any investments within the account, contrary to MFDA Rule 2.2.1;



c)   

from in or about 2010 to April 2014, the Respondent failed to adequately supervise concentration risk in the accounts of some of Approved Person JEC's clients contrary to MFDA Rule  2.2.1; and



d)   

from about August 2012 to January 2014, the Respondent failed to take appropriate supervisory action regarding Approved Person JEC's non-compliance with Member directives, thus failing to ensure the handling of its business was in accordance with MFDA By-laws, Rules and Policies and with applicable securities legislation, contrary to MFDA Rule 2.5.1 and Rule 2.1.1.

The settlement hearing is scheduled to take place on December 13, 2016, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario. MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

A copy of the Notice of Settlement Hearing 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 Members and their approximately 83,000 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.

SOURCE Mutual Fund Dealers Association of Canada

For further information: Charles Toth, Director, Litigation, 416-943-4619, ctoth@mfda.ca

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http://www.mfda.ca

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