Manulife Securities Investment Services Inc. is facing a fine of $200,000 and costs of $50,000 for a lack of disclose related to its relationship with Portus Alternative Asset Management Inc., the Mutual Fund Dealers Association of Canada has announced.
An MFDA hearing panel approved the settlement agreement between the MFDA and Manulife on Monday.
The fines are related to allegations that Manulife had a referral arrangement with Portus Alternative Asset Management Inc. between 2003 and 2005, and failed to disclose to its clients a component of the compensation that it received under this arrangement. The lack of disclosure is contrary to MFDA by-laws.
Portus went bankrupt in 2005 as a result of “misappropriation of investors’ funds,” and its co-founders have been charged with fraud.
IE
MFDA panel approves $200,000 fine against Manulife Securities
Firm failed to disclose referral arrangement with Portus to clients
- By: Megan Harman
- December 23, 2008 December 23, 2008
- 08:35
Megan Harman