MFDA sanctions IPC for failure to supervise

Failing to adequately supervise two approved persons has resulted in sanctions for IPC Investment Corporation.

A hearing panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada has issued its Reasons for Decision in connection with the firm’s settlement hearing held in Toronto on December 13, 2016.

According to the hearing panel, IPC failed to report one approved person’s suspected prohibited trading activities on the MFDA METS reporting system and to conduct a timely investigation of those activities.

The hearing also addressed IPC’s failure to adequately supervise a second approved person’s recommendations to clients, which resulted in clients holding investments concentrated in gold-related sector funds. As a result, there was a failure to ensure that each order accepted or recommendation made for the clients’ accounts was suitable.

The sanctions imposed on the respondent are:

• a fine in the amount of $100,000;
• costs in the amount of $15,000; and
• future compliance with MFDA Rule 2.5.1 and Rule 2.1.1.

MFDA called IPC’s contraventions “serious” but noted the firm had no past disciplinary history and that it co-operated in the investigation.

Read the full decision here.

Staff

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