MFDA accepts settlement with Excel Financial Growth

A Settlement Hearing in the matter of Excel Financial Growth Inc. (the “Respondent”) was held on August 20, 2010 in Toronto, Ontario before a Hearing Panel of the MFDA’s Central Regional Council.

The Hearing Panel accepted the Settlement Agreement between the Respondent and MFDA Staff, as a consequence of which the Respondent:

• Has paid a fine in the amount of $10,000;

• Shall, within three months, implement policies and procedures to fully resolve compliance deficiencies identified in a 2008 MFDA Compliance Examination Report; and

• Has paid costs in the amount of $2,500.

In the Settlement Agreement the Respondent admitted that, contrary to MFDA Rules, between August 2005 and May 2008 it failed to:

• establish, implement and maintain an adequate two-tier supervision structure to supervise the trading activity of Approved Persons at its branch office in Richmond, British Columbia and, in some instances, to review the trading activity and new client account openings of producing branch managers;

• maintain evidence of head office review of trades;

• maintain evidence of branch manager review and approval of new client accounts;

• establish, implement and maintain adequate policies and procedures to conduct reasonable due diligence on exempt securities and to supervise the sale of exempt securities to clients;

• establish, implement and maintain adequate policies and procedures at head office to detect excessive trading and market timing.

The Hearing Panel will issue written reasons for its decision in due course.

Click here to read the Settlement Agreement.

Click here to read the Hearing Panel’s Order.

(08/23/10)

Staff

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