The Mutual Fund Dealers Association has fined Worldsource Financial Management Inc. $50,000 for compliance deficiencies.

At a settlement hearing held Wednesday, a hearing panel of the MFDA’s Central Regional Council accepted a settlement agreement between Worldsource and MFDA staff.

In the settlement agreement, Worldsource admitted that:

– it failed to fully carry out the terms of a 2007 Agreement and Undertaking with the MFDA;

– between February 2003 and November 2008, it failed to establish, implement and maintain adequate policies and procedures to address certain compliance deficiencies; and

– between January 2006 and November 2008, it failed to maintain adequate records of trade supervision conducted at both the branch and head office levels, including trades reviewed and records of inquiries made, responses received and resolutions achieved.

As a consequence of the settlement, Worldsource paid a $50,000 fine and $25,000 for the costs of the investigation and proceedings.

Worldsource also agreed to retain an independent monitor at its own expense to resolve certain compliance deficiencies.

The hearing panel said that it would issue written reasons for its decision in due course.

IE