The Mutual Fund Dealers Association of Canada has begun publishing fine payment status for all respondents ordered to pay fines by MFDA hearing panels.
All information can be found under the Completed Cases tab within the Enforcement section of the MFDA website. Fine payment status will be updated quarterly going forward.
“This new process is another step towards the MFDA’s goal of ensuring we have firm, fair and transparent regulatory processes,” says MFDA president and CEO Mark Gordon. “It will increase transparency relating to the MFDA’s fine collection rate, and allow Canadian investors to obtain further important background information on Approved Persons and Members.”
As of today, as many reps have paid fines as those who haven’t, and only a small portion are paying fines through installments. Site visitors can view the details of the cases and fines of each respondent listed.
In addition to fines, respondents who are found to have violated regulatory requirements may be sanctioned by the MFDA with prohibitions, suspensions or other non-monetary sanctions, such as a requirement to re-write specific industry courses.
As a result, the MFDA also provides information for investors on how to check the disciplinary history and registration status of an advisor through the Check an Advisor section of its website.
During the MFDA fiscal year, ending June 30, 2014, hearing panels imposed fines of $54,500 against Approved Persons who are currently registered, all of which have been collected.
Panels also imposed fines of $3,642,500 against Approved Persons who are no longer registered, of which $51,000 has been collected. In most of the latter cases, those Approved Persons are also subject to permanent prohibitions or suspensions.