The Mutual Fund Dealers Association of Canada (MFDA) launched a record number of enforcement proceedings in 2015, according to the self-regulatory organization’s (SRO) annual enforcement report.
The MFDA initiated 69 enforcement proceedings during the year, up from 48 cases in 2014. The most prominent allegation in these cases involved either blank signed forms or falsified signatures, followed by suitability issues and unauthorized trading.
The SRO also concluded 65 cases in 2015, including 36 settlements and 29 cases that went to a hearing. These cases resulted in $5.4 million in total fines and costs of $479,500. Approximately 16% of the sanctions levied have actually been collected, the MFDA reports, which is slightly ahead of its historical average.
In addition to the monetary sanctions, permanent prohibitions were also levied against 19 representatives and six reps were suspended.
In cases that didn’t go so far as allegations, the MFDA also issued 85 warning letters during the year and 86 cautionary letters.
“Investors can be confident that we are focused on our investor protection mandate and will continue to protect investors by aggressively pursuing enforcement action against those who breach MFDA rules,” says Mark Gordon, president and CEO of the MFDA, in a statement.