The Mutual Fund Dealers Association has fined a firm $10,000 for failing to comply with Know Your Client rules, suitability rules and other standards.

At a hearing on Thursday, an MFDA hearing panel approved a settlement agreement for De Thomas Financial Corp.

The Thornhill, Ont,-based mutual fund dealer, which has seven branches and is registered in Ontario, Quebec, Alberta and British Columbia, has been ordered to pay a fine of $10,000 plus costs of $2,500.

The penalties come after the MFDA conducted compliance examinations of the firm’s operations in 2003 and 2008, and found several deficiencies.

According to the settlement agreement, De Thomas Financial admitted that it failed to obtain adequate KYC and suitability information for each client account from September 2003 to November 2007. During the same period, the firm also failed to implement and maintain a two-tier account supervision structure, and failed to conduct adequate trade supervision.

As part of the settlement agreement, De Thomas Financial is also required to retain an independent monitor to assist it in resolving all of its regulatory deficiencies. The firm must work with the monitor to develop a written plan of action by October 12, 2009.