The Mutual Fund Dealers Association of Canada (MFDA) released its 2017 enforcement report (press release here). In addition to the new focus on sales incentives, the volume of pre-signed blank form enforcement cases remained near its 2016 high.
Highlights of the report include:
- 121 proceedings commenced and 133 proceedings concluded in 2017 which are both the highest number of proceedings commenced and concluded by the MFDA in any year to date.
- Concluded hearings resulted in 22 permanent prohibitions and 48 suspensions against Approved Persons and total fines of $8,498,250 and $536,500 in costs against Members and Approved Persons.
- The completion of the first proceeding against a dealer by any Canadian securities regulator addressing sales incentives, marketing and educational practices under National Instrument 81-105.
- Pre-signed forms remained the most common allegation in proceedings commenced and cases opened at case assessment.