TORONTO, Jan. 21, 2013 /CNW/ - A Settlement Hearing in the matter of Portfolio Strategies Corporation (the "Respondent") was held on January 18, 2013 in Calgary, Alberta before a Hearing Panel of the MFDA's Prairie Regional Council. The Hearing Panel accepted the Settlement Agreement between MFDA Staff and the Respondent, as a consequence of which the Respondent:
- had paid a fine of $35,000;
- has paid costs of $5,000; and
- shall comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 2.2.1, 2.5, and 2.10, and MFDA Policy # 2.
In the Settlement Agreement, the Respondent admitted that between December 1, 2006 and April 2009:
- the Respondent's head office compliance staff failed to adequately supervise some trades, contrary to MFDA Rules 2.2.1, 2.5 and MFDA Policy # 2; and
- the Respondent failed to establish adequate policies and procedures to supervise leveraging recommendations, and also failed to maintain, in respect of some leveraged trades, adequate records of trade supervision, including records of trades reviewed, inquiries made, responses received and resolutions achieved, contrary to MFDA Rules 2.2.1, 2.5, 2.10 and MFDA Policy # 2.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 115 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada