The Mutual Fund Dealers Association today published the penalty guidelines it uses in disciplinary proceedings.

The MFDA has developed these guidelines as required under the terms and conditions of its recognition as a self-regulatory organization. The guidelines are not binding on a hearing panel, the MFDA notes, and “are intended only to provide a basis upon which discretion can be exercised consistently and fairly in like circumstances.”

It points out that the facts of a particular case may warrant that a hearing panel impose penalties of a different type and range than those stated in the guidelines, including no penalty at all.

“The penalty guidelines will assist respondents, staff and hearing panels in the fair andconsistent settlement and litigation of disciplinary proceedings,” it says, adding that they will also benefit the public and media in understanding how penalties are determined in disciplinary cases and in increasing the transparency of the disciplinary process generally.