Toronto-based Sentry Investments Inc. acknowledged on Friday that the recent turnover of its CEOs follows the commencement of an investigation by the Ontario Securities Commission (OSC) into the firm’s mutual fund sales practices.
The asset manager initially announced on Jan. 16 that Phil Yuzpe would replace Sean Driscoll in the role of CEO but made no reference to the OSC’s investigation or sales practice issues.
The investigation surrounds the asset manager’s compliance with National Instrument 81-105, which details permitted and non-permitted forms of compensation between a mutual fund company and a mutual fund dealer.
Sentry has taken “a number of actions” to begin correcting these sales practice issues, according to the firm’s announcement. This includes naming Phil Yuzpe as president and CEO and ultimate designated person and the resignation of Sean Driscoll from the roles of CEO and ultimate designated person.
Sentry also created a special committee of the board of directors of Sentry Investments Corp., Sentry’s parent company, in September 2016 to examine compliance issues relating to sales practices.
“Under the supervision of the special committee, an external compliance consultant is being retained to review and recommend improvements to Sentry’s internal policies, procedures and practices, and internal controls,” the announcement states. “The consultant’s findings will be reported to the OSC and Sentry has committed to implementing all of their recommendations for changes or improvements.”
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