TORONTO, Dec. 21, 2017 /CNW/ - A settlement hearing in the matter of Sun Life Financial Investment Services (Canada) Inc. ("Respondent") was held yesterday 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 approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a fine in the amount of $1,700,000; and
- costs in the amount of $100,000.
In the Settlement Agreement dated December 18, 2017, the Respondent admitted that:
- commencing in 2002, it failed to establish and maintain an adequate system of controls and supervision to ensure that it complied with securities legislation relating to internal dealer incentive and sales practices and marketing and educational practices, contrary to MFDA Rules 2.5.1 and 2.1.1;
- between April 1, 2013 and June 30, 2015, it failed to adequately supervise leveraged accounts and concentration risk, contrary to MFDA Rules 2.5.1 and 2.2.1;
- between January 2010 and June 2015, it failed to report client complaints, bankruptcy and termination of Approved Persons within five (5) business days, contrary to MFDA Policy No. 3 and MFDA Policy No. 6;
- between June 2014 and June 3, 2016, it failed to adequately supervise the suitability of the sale of DSC mutual funds to clients, contrary to MFDA Rules 2.5.1 and 2.2.1; and
- between November 2015 and January 2016, it failed to adequately supervise a trade, contrary to MFDA Rule 2.5.1.
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, [email protected]