MFDA Releases 2014 Annual Enforcement Report

TORONTO, April 30, 2015 /CNW/ - Today the MFDA released its 2014 Annual Enforcement Report which highlights the MFDA's enforcement activities in combating unsuitable investment recommendations, falsification, unauthorized trading and other securities regulatory breaches.

The report includes information about how the MFDA Enforcement Department operates, highlights key achievements, and describes significant disciplinary cases completed in 2014.

"The activities of the MFDA Enforcement Department are a key component of discharging the MFDA's investor protection mandate. MFDA rules require that Members and their Approved Persons meet high standards of conduct in all aspects of their dealings with Canadian investors.  The efforts of the MFDA Enforcement Department, as outlined in this report, ensure that Members and Approved Persons who do not comply with regulatory standards are sanctioned accordingly.  These sanctions have deterrent and preventative effects which contribute to the maintenance of the high level of regulatory compliance found within the MFDA's membership" said Mark Gordon, MFDA President and CEO.

Highlights of the MFDA's 2014 Annual Enforcement Report include:

  • The establishment of a whistleblower program.
  • 418 cases opened in 2014.
  • 90 warning letters and 95 cautionary letters issued against its Members and Approved Persons in 2014.
  • 48 proceedings commenced against its Members and Approved Persons in 2014, 33% of which involved seniors or vulnerable persons as defined by the MFDA.
  • 50 hearings concluded in 2014, resulting in 19 permanent prohibitions and 20 suspensions.
  • Total fines of $7,549,500 and total costs of $279,500 against MFDA Members and Approved Persons. 
  • Entering into memoranda of understanding with the Financial Services Commission of Ontario and the Life Insurance Council of Saskatchewan, with the aim of improving cooperation between the MFDA and these regulatory bodies, as well as facilitating the sharing of information.

The 2014 Annual Enforcement Report is now available on the MFDA's 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 104 Members and their approximately 80,000 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: Shaun Devlin, Senior Vice-President, Member Regulation - Enforcement, (416) 943-4672 or sdevlin@mfda.ca

RELATED LINKS
http://www.mfda.ca

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