Regulator for mutual fund deals reports more disciplinary hearings in 2013


TORONTO – The self-regulatory association for Canada’s mutual fund industry says its enforcement arm initiated almost a third more disciplinary proceeding last year compared with 2012.

The Mutual Fund Dealers Association of Canada said Thursday that 65 disciplinary hearings were begun in 2013, an increase from 48 hearings in 2012 and up from 36 in 2011.

In total, 47 hearings were concluded, resulting in 21 permanent prohibitions and 11 suspensions.

The concluded hearings also resulted in fines totalling more than $10.8 million, it said.

“The results presented in this report are the culmination of our continued execution of the MFDA strategic plan and its goals of increased operational efficiencies while promoting member and approved person compliance and increasing investor confidence,” MFDA president and CEO Mark Gordon said in a release Thursday.

Among other things, the organization continued its focus on complaints that involve seniors, defined by the MFDA as investors 60 years of age and over, as well as other vulnerable groups such as investors with limited resources or language, literacy or disability issues.

It also continued use of a fast-track procedure that allowed several cases to proceed to a disciplinary hearing on an expedited basis in circumstances where there might have been a risk of ongoing harm to the public, it said.

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