MFDA issues Notice of Settlement Hearing in the Matter of Worldsource
Financial Management Inc.

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

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

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