On May 23, the Mutual Fund Dealers Association (MFDA) published for comment proposed changes to its Sanction Guidelines. The amendments reflect industry trends away from recommended fine amounts and penalties for specific violations of MFDA By-laws, Rules and/or Policies and toward a principles-based approach to sanctioning. The revised Sanction Guidelines also have expanded the list of “key factors” to consider in determining sanctions to include, among other things, whether the respondent:

  • voluntarily implemented corrective measures after the misconduct;
  • voluntarily engaged in acts of compensation, restitution or disgorgement; and
  • gave proactive and exceptional assistance to the MFDA in connection with the investigation.

Comments are due on August 20, 2018.