A settlement hearing in the matter of Independent Accountants’ Investment Group (IAIG) was held on March 30 in Toronto before a hearing panel of the MFDA’s Central Regional Council.

At the conclusion of the hearing, the panel reserved its decision as to whether it would accept or reject the settlement agreement entered into by the respondent and MFDA Staff on February 23, 2012.

In its decision and reasons dated April 5, 2012, the hearing panel accepted the settlement agreement, and IAIG has paid a $25,000 fine and $2,500 in costs.

In the settlement agreement, IAIG admitted that:

  1. between March 1, 2008 and March 31, 2010, it failed to ensure that individuals responsible for trade supervision for the respondent at both the branch and head office levels, maintained records of trade inquiries made, responses received or resolutions achieved with respect to trade supervision;
  2. it failed to establish, implement and maintain adequate policies and procedures, and designate appropriately qualified and accountable individuals to fulfill its supervisory obligations insofar as:

a) between October 27, 2009 and May 10, 2010, the respondent failed to designate an individual as a branch manager who was an employee or agent of the respondent, supervised by and accountable to the respondent to conduct trade supervision for its Oakville branch;

b) between October 27, 2009 and May 10, 2010, the respondent failed to designate an individual to conduct head office account supervision for its Oakville branch;

c) between May 10, 2010 and January 6, 2011, the respondent failed to designate an individual to conduct branch level trade supervision for its Oakville branch who:

i) was an employee or agent of the respondent working on-site at its Oakville branch; and

ii) had satisfied the proficiency requirements to be a branch manager.

d) between October 27, 2009 and May 10, 2010, it designated an individual to conduct head office supervision for its Kelowna branch who was not an employee or agent of the respondent, supervised by and accountable to the respondent;

e) between March 9, 2010 and May 10, 2010, it designated an individual to conduct head office supervision for its Edmonton branch who was not an employee or agent of the respondent, supervised by and accountable to the respondent;

f) between June 1, 2010 and January 28, 2011, it designated an individual to conduct account supervision for its Oakville, Edmonton and Kelowna branches who had not satisfied the proficiency requirements to be a branch manager or a compliance officer;

Contrary to MFDA Rules 2.1.1 (b), (c) and (d), 2.2.1, 2.5, 2.10, former Rules 1.2.2 and 1.2.3 and MFDA Policy No. 2.

Read the settlement agreement and decision and reasons.