The MFDA has released an annual enforcement report, which marks a new approach in MFDA enforcement reporting.

The report showcases how the MFDA’s enforcement department operates, as well as summarized examples of key achievements and cases from 2012.

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“Our core focus at the MFDA is to provide protection to mutual fund investors and to strengthen public confidence in the Canadian mutual fund industry,” says Mark Gordon, MFDA president & CEO.

He adds, “This report demonstrates we have made significant efforts to achieve both of these objectives in 2012.”

Highlights of the MFDA’s report include:

  • The MFDA commenced 48 hearings last year, compared to only 36 in 2011;
  • Hearings concluded in 2012 resulted in fines of $3,278,750 and costs of $216,000 against approved persons, and fines of $330,000 and costs of $37,500 against members;
  • The MFDA revised its case screening guidelines to identify and prioritize complaints that involve seniors—now defined as investors 60 years of age and over—as well as other vulnerable groups, including investors with limited resources or language, literacy or disability issues; and
  • The MFDA implemented “simplified formal proceedings”, consisting of a fast track and a bulk track. The fast track procedure allows cases to proceed to a disciplinary hearing on an expedited basis if there’s any risk of ongoing harm to the public. The bulk track procedure allows routine cases to be brought to a hearing using fewer resources, allowing the MFDA to increase its disciplinary response on certain types of cases that are of continuing concern.

Read the full report.

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