The Autorité des marchés financiers (AMF) says that it has suspended the registrations of mutual fund dealer, MonArc Money Solutions Inc., and its reps, after the firm failed to meet a deadline for improving its supervisory arrangements.
Back in July, the Bureau de décision et de révision handed down a decision, which was sought by the AMF, ordering MonArc “to set up control and oversight measures in order to ensure that the company and its employees comply with the Securities Act and its regulations.” In particular, it was required to appoint a new ‘officer in charge’ and a new chief compliance officer.
These measures were to be established to the AMF’s satisfaction within 90 days. Now, the AMF says that the firm failed to comply with the order within the prescribed time period.
As a result, its registration as a mutual fund dealer is suspended immediately, as is the registration of all of its reps. The regulator recommends that the firm’s clients “contact their mutual fund manager directly for any questions about their account.”
According to the July decision, the firm was also prohibited from hiring new reps, from soliciting new clients, and from opening new client accounts. The firm, its existing officer in charge, Karina Stevens, and the chief compliance officer, Paul Hauck, also agreed to pay penalties totaling $63,704. As well, Stevens and Hauck were banned from serving as supervisors for two years.
The decision was based on violations noted by the AMF during inspections conducted in 2012 and 2013, including failing to file various required documents, and supervisory failures.