TORONTO, July 7 /CNW/ - The MFDA today 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 Excel Financial Growth Inc. and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The subject matter of the proposed settlement agreement concerns allegations that in or about August 2005 to May 2008 the Respondent failed to:
(a) have an adequate two-tier supervision structure to supervise
trading activity, contrary to MFDA Rule 2.5 and MFDA Policy No. 2;
(b) maintain evidence of head office review of trades, contrary to MFDA
Rule 2.5 and MFDA Policy No. 2;
(c) maintain evidence of branch manager review and approval of new client
accounts, contrary to MFDA Rules 2.2.3, 2.5, 5 and MFDA Policy No. 2;
(d) have adequate policies and procedures to conduct due diligence on
exempt securities and to supervise the sale of exempt securities to
clients, contrary to MFDA Rule 2.2.1 and National Instrument 45-106;
(e) have adequate policies and procedures to detect excessive trading and
market timing, contrary to MFDA Rule 2.5 and MFDA Policy No. 2.
The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on Friday, August 20, 2010 in the hearing room located at the offices of the MFDA at 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.
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 139 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information: For further information: Shaun Devlin, Vice-President, Enforcement, 416-943-4672 or firstname.lastname@example.org