A core mandate of the MFDA is to ensure a high-level of conduct among our Members with regard to mutual fund distribution in Canada.
The activities of the Enforcement Department are directly in support of the MFDA's goal of developing and establishing a firm, fair and transparent regulatory processes and its strategy to enforce MFDA requirements to enhance investor protection. The activities of the Enforcement Department also directly support the MFDA's goal of participating in the Canadian securities regulatory framework, by developing and maintaining collaborative working relationships with other securities regulatory authorities and law enforcement agencies.
The Enforcement Department operates on several general principles:
- Our actions are firm, fair and transparent.
- Members and Approved Persons are provided opportunity for input before a decision is made on disciplinary action, except in urgent cases involving potential public harm.
- In all cases, the level of supervision by the Member and its Approved Persons will be part of the review.
- Cases are reviewed proactively, with a view to identifying possible associated misconduct and assessing root causes.
- The Department works on a cooperative basis with the Compliance and Policy departments to refer cases and issues where appropriate.
- The Department works on a cooperative basis with Enforcement staff at securities commissions and self-regulatory organizations.
The MFDA's Enforcement Department investigates when MFDA member firms and their Approved Persons breach our rules.
The Enforcement Department is organized into three main groups:
- Case Assessment - The Case Assessment group review and assess cases as received. The Case Assessment group escalates cases to Investigations where there are grounds to believe that there has been a substantial breach of MFDA requirements, or where the matter is sufficiently complex to require a more extensive review by an investigator.
- Investigations - The group conducts in-depth investigation of cases, which includes gathering documentation, conducting interviews, analyzing cases and preparing reports and recommendations. The group also coordinates investigation activity with other regulatory and law enforcement agencies.
- Litigation - Counsel in this group:
- Provide advice to investigators on all investigations;
- Receive reports on those cases that are escalated from Investigations;
- Analyze cases and prepare recommendations; and
- Act as MFDA counsel in disciplinary hearings before Regional Councils.
See the Guide to the Hearing Process.
See the list of current MFDA hearings.