MFDA approves settlement with Sun Life Financial Investment Services Canada
The Hearing Panel approved the settlement agreement between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent: a fine in the amount of $1,700,000; and costs in the amount of $100,000.
n the Settlement Agreement dated December 18, 2017, the Respondent admitted that:
1. commencing in 2002, it failed to establish and maintain an adequate system of controls and supervision to ensure that it complied with securities legislation relating to internal dealer incentive and sales practices and marketing and educational practices, contrary to MFDA Rules 2.5.1 and 2.1.1;
2. between April 1, 2013 and June 30, 2015, it failed to adequately supervise leveraged accounts and concentration risk, contrary to MFDA Rules 2.5.1 and 2.2.1;
3. between January 2010 and June 2015, it failed to report client complaints, bankruptcy and termination of Approved Persons within five (5) business days, contrary to MFDA Policy No. 3 and MFDA Policy No. 6;
4. between June 2014 and June 3, 2016, it failed to adequately supervise the suitability of the sale of DSC mutual funds to clients, contrary to MFDA Rules 2.5.1 and 2.2.1; and
5. between November 2015 and January 2016, it failed to adequately supervise a trade, contrary to MFDA Rule 2.5.1. ■