The MFDA’s 2013 Enforcement Report contains a summary of the cases opened by the MFDA and the disciplinary proceedings brought by the MFDA in 2013.
The MFDA opened 426 cases in 2013 as a result of 208 METS reports, 181 public complaints, 24 referrals from other regulators, eight internal referrals, two Member referrals, two financial industry participant referrals, and one case brought to the MFDA’s attention by the media. The largest percentage of cases opened involved blank signed forms (13%) and suitability/leveraging (12%).
MFDA Staff closed 137 cases in 2013 with the issuance of a warning letter (where the MFDA could have escalated the matter to a formal disciplinary hearing but chose not to) and 138 cases were closed with the issuance of a cautionary letter (where the violation is less serious in nature and one that the MFDA would not generally escalate to a formal disciplinary hearing).
The MFDA’s investigations group investigated 113 cases in 2013, and 61 of those were referred to enforcement counsel with a recommendation to commence disciplinary proceedings.
The MFDA commenced 65 hearings in 2013, with the largest percentage of cases involving blank signed forms and outside business activities. Forty-seven hearings were concluded, resulting in fines of $10,850,500 against Members and Approved Persons. Twenty-one Approved Persons and Members were the subject of a permanent prohibition, and 11 Approved Persons and Members were suspended from registration.
The MFDA’s 2013 Enforcement Report also includes case summaries from a number of key enforcement actions in 2013. A copy of the report can be accessed here.