TORONTO, July 9 /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 Worldsource Financial Management 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:
(a) between February 1, 2003 and November 30, 2008, the Respondent failed
to establish and implement adequate supervisory policies and
procedures to ensure:
(i) the accuracy, completeness and approval of all KYC information;
(ii) the timely review and approval of new client accounts; and
(iii) the detection and prevention of patterns of excessive trading
and switching in client accounts;
contrary to MFDA Rules 2.2 and 2.5 and MFDA Policy No. 2;
(b) the Respondent failed to fully carry out the terms of an Agreement
and Undertaking entered into with Staff on April 20, 2007 to resolve
compliance deficiencies that had been previously identified by Staff
in MFDA Compliance Examination Reports; and
(c) between January 1, 2006 and November 30, 2008, the Respondent failed
to maintain adequate records of trade supervision contrary to MFDA
Rules 2.2, 2.5 and MFDA Policy No. 2.
The settlement hearing is scheduled to commence at 2:00 p.m. (Eastern) on Wednesday, July 14, 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