This week a Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (MFDA) issued its Reasons for Decision in connection with a December 2017 settlement hearing at which Sun Life Financial Investment Services (Canada) Inc. was sanctioned $1.7 million, plus $100,000 in costs.
In a March 6 announcement, the MFDA said that the Hearing Panel confirmed the sanctions. The fine and costs have been paid.
In December, Sun Life Financial Investment Services (Canada) admitted that: beginning in 2002 it “failed to establish and maintain an adequate system of controls and supervision to ensure that it complied with securities legislation relating to internal dealer incentive and sales practices and marketing and educational practices,” stated the MFDA.
The company also failed, between April 1, 2013 and June 30, 2015 to adequately supervise leveraged accounts and concentration risk. It also admitted to other supervision failures. To learn more, copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website.