The Mutual Fund Dealers Association of Canada (MFDA) will hold a hearing on Dec. 20 to consider a proposed settlement with Sun Life Financial Investment Services (Canada) Inc., stemming from a series of alleged supervisory failures.
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.
The terms of the settlement will only be revealed if the agreement is approved at the hearing. The allegations have not been proven.