Professionals should not go up against their regulator alone
The Mutual Fund Dealers Association (“MFDA”) is the regulator for mutual fund dealers in Canada. They:
- decide who has a certificate to practise as a mutual fund dealer
- handle complaints against mutual fund dealers
But your College does not work for you. In fact, the College can:
- deny applicant’s applications for a certificate to practise or
- suspend, revoke or place terms, conditions, or limitations on psychologist’s certificate to practise.
If you are a mutual fund dealer in Ontario and you plan to apply to the College or have received notice of complaint it is important that you have representation to protect your interests and defend your rights.
Our team of experienced Our tOur team of experienced lawyers can assist mutual fund dealers in Ontario with matters including:
- Advising mutual fund dealers on compliance with relevant legislation and standards
- Defending mutual fund dealers in hearings at the MFDA
- Advocate for mutual fund dealers through settlement proceedings
- Representing mutual fund dealers in appeals before the Divisional Court of Ontario
Intake
The Enforcement Department at the MFDA has four main functions, the first of which is Intake.
The Enforcement Department receives information about potential violations of MFDA Rules, By-laws, Policies and applicable securities regulations via:
- Event reports filed on the Member Event Tracking System (METS) when a complaint has been made
- Identified issues through branch review programs and other supervisory activity
Event reports can be made by:
- The public
- Other regulators
- The MFDA Compliance Department
When the Enforcement Department receives this information, it is screened, and cases are opened where there is a possibility of a violation of MFDA requirements.
Case Assessment
Once a case is opened, the Case Assessment team gathers further information and assesses whether there are grounds to believe a violation has occurred.
Screening factors include the following:
- The seriousness of the alleged misconduct
- Whether the misconduct resulted in significant losses or harm to investors
- Whether the victim is part of a vulnerable or priority group
Once a complaint has been assessed and grounds for violation have been determined, the Case Assessment team may:
- Deal with the matter by issuing the Member a Warning Letter or Cautionary Letter
- Escalate the matter to the Investigations group
Investigations
The Investigations group conducts in-depth examinations by:
- Gathering documentation
- Conducting interviews
- Analyzing cases
- Preparing reports and recommendations
The role of the Investigations group is to determine whether a violation of MFDA By-laws, Rules, Policies, or applicable securities legislation has occurred
The Investigations group also works with other regulatory bodies and law enforcement as necessary
Litigation
Through its regulatory mandate, the MFDA is authorized to commence disciplinary proceedings against its Members and Approved Persons who have allegedly engaged in misconduct.
Disciplinary proceedings are conducted by Enforcement Counsel before Hearing Panels of the MFDA Regional Councils.
The Litigation process is as follows:
- The Approved Person or Member will receive a Notice of Hearing
- They may contact MFDA Staff to initiate settlement discussions or choose to dispute any of the facts or allegations
- If they choose to dispute, the matter will proceed to a Hearing on the Merits
- Once a settlement is reached, the matter will proceed to a Settlement Hearing
- At the Settlement Hearing, a Hearing Panel will review the Settlement Agreement and will determine if it is reasonable and in the public interest
- If accepted, the Hearing Panel will impose the agreed-upon penalties on the Approved Person or Member, and the Settlement Agreement and the Reasons for Decision will be released to the public
