A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has reserved its decision as to whether to accept or reject a settlement agreement between MFDA staff and Toronto-based Sun Life Financial Investment Services (Canada) Inc., the self-regulatory organization announced Wednesday.
In the event that the panel accepts the settlement, it will provide written reasons for its decision, the MFDA says in its announcement.
If panel rejects the settlement, then it may provide written reasons for its decision at its own initiative or at the request of a party to the proceeding.
According to the MFDA’s notice of hearing, MFDA staff allege the mutual fund dealer failed to:
> adequately supervise leveraged accounts and concentration risk between 2013 and 2015;
> adequately supervise the suitability of the sale of DSC mutual funds from 2014 to 2016; and
> report client complaints, bankruptcies and rep terminations within five days, as required by MFDA rules, between 2010 and 2015.
MFDA staff also allege that, starting in 2002, the dealer failed to maintain internal controls to ensure compliance with securities rules regarding dealer incentive and sales practices, and marketing and educational practices.