The Autorité des marchés financiers (AMF) reports that a mutual fund dealer is facing sanctions as a result of a number of compliance violations it uncovered over the past two years.
The AMF says that the Bureau de décision et de revision last month (July 11) handed down a decision against fund dealer, MonArc Money Solutions Inc. As a result, the AMF says that the firm, its officer in charge (Karina Stevens) and the chief compliance officer (Paul Hauck), agreed to pay monetary penalties totaling $63,704; and, it also imposed various conditions on the firm’s activities.
Those conditions include that MonArc is required to improve its internal controls, and appoint a new officer in charge and a new chief compliance officer within 90 days of the decision. The firm also prohibited from hiring new reps, soliciting new clients, and from opening new client accounts until those new officers are in place to the satisfaction of the AMF. And, the AFM says that Stevens and Hauck will not be able to act as supervisors for two years.
The Quebec regulator says that the sanctions follow a number of supervisory violations noted during its inspections of the firm in 2012 and 2013. In particular, the AMF says that the firm failed to produce various required documents within the prescribed time period. And, it says that the executives “failed to fulfill some of their obligations as chief compliance officer and officer in charge” at the firm.