The Mutual Fund Dealers Association of Canada collected about 16 per cent of fines imposed last year in disciplinary actions, based on the self-regulatory agency’s annual report.
Sixty-five hearings were completed, with total fines of nearly $5.4 million imposed. The MFDA collected $843,982 of that amount.
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In all provinces except for Alberta, the self-regulatory organization has powers to collect fines only from people who remain in the industry as Approved Persons regulated by the MFDA. However, the annual report says the mutual fund dealers association needs to achieve the Capital Markets Act revised to permit self-regulatory organizations to file for disciplinary decisions directly with the courts. This would allow them to be enforced as a order from the court.
Collecting fines and other financial penalties has long been challenging for regulators, particularly self-regulatory agencies such as the MFDA and the Investment Industry Regulatory Organization of Canada, also is seeking changes to enlist court assistance with collections.
Since the MFDA began taking disciplinary action in 2004, hearing panels have imposed total fines of nearly $52-milion, which just shy of $6.4 million (12 percent) has been collected.
