MFDA Hearing Panel accepts settlement agreement with WFG Securities Inc.

TORONTO, May 4, 2016 /CNW/ - A settlement hearing in the matter of WFG Securities Inc. (the "Respondent") was held today in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel accepted the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:

  • has paid a fine in the amount of $50,000;
  • has paid costs in the amount of $10,000; and
  • shall in the future comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 2.2.1, 2.2.2, 2.5.1, 5.1, and 5.3, and MFDA Policies No. 2 and No. 5.

In the Settlement Agreement, the Respondent admits the following contraventions of the By-laws, Rules or Policies of the MFDA:


between November 1, 2010 and January 31, 2013, the Respondent failed to record client information and/or transaction details for scholarship plans on its back office system and/or failed to maintain trade blotters that included scholarship plan transactions, and thereby failed to facilitate branch and head office supervision of the Heritage Plan client account activities, contrary to MFDA Rule 5.1 and MFDA Policy No. 2;


between November 1, 2010 and January 31, 2013, the Respondent failed to establish, implement and maintain policies and procedures for the supervision of client activity in scholarship plans, thereby failing to ensure the handling of its business was in accordance with the By-laws, Rules and Policies and with applicable securities legislation, contrary to MFDA Rules 2.5.1, MFDA Policy No. 2 and MFDA Policy No. 5;


between November 1, 2010 and January 31, 2013, the Respondent failed to require its Approved Persons to complete the Respondent's KYC forms and/or obtain KYC information for clients opening scholarship plans, thereby failing to use due diligence to learn the essential facts relative to each client and to each order or account accepted, contrary to MFDA Rules 2.2.1 and 2.2.2, and MFDA Policy No. 2.

A copy of the Settlement Agreement is available on the MFDA website at During the period described in the Settlement Agreement, the Respondent was registered as a mutual fund dealer in all provinces and territories

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,


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