MFDA fines DFSS $200,000 for failure to supervise rep

first_img Facebook LinkedIn Twitter Mouth mechanic turned market manipulator PwC alleges deleted emails, unusual transactions in Bridging Finance case Earlier this week, an MFDA hearing panel approved a settlement between MFDA staff and DFSS that sees the firm fined $200,000 and ordered to pay costs of $25,000 for various supervisory failures involving a Conrad Eagan, a former mutual fund representative. Eagan was permanently banned and fined $5 million by the MFDA last year, after the self-regulatory organization found that he misappropriated at least $3.5 million from clients, among various other offences, while he was a rep, first with DFSS and later with Worldsource Financial Management Inc. Read: MFDA bans advisor and fines him $5 million The MFDA is sanctioning DFSS for supervisory failures involving Eagan, including allegations that DFSS failed to properly investigate after discovering that he was acting as estate trustee for a client, failed to adequately supervise his trading activity, and failed to deal fairly with a complaint regarding his conduct. In settling the case, the DFSS admitted to the supervisory lapses. According to the settlement, had the firm conducted more robust oversight of Eagan, “it is more likely” that his misconduct could have been detected, or prevented, before he left the firm. The settlement also notes that, since 2011, DFSS has: > ramped up compliance staff that are responsible for trade supervision, investigations, and complaint handling; > changed the reporting structure of its compliance department; and > enhanced the technology and procedures that it uses in supervision and complaint handling. Photo copyright: serezniy/123RF Keywords EnforcementCompanies Mutual Fund Dealers Association IIROC reaches settlement with three former All Group reps serezniy/123RF Share this article and your comments with peers on social media BFI investors plead for firm’s sale The Mutual Fund Dealers Association of Canada (MFDA) has sanctioned Desjardins Financial Security Services Inc. (DFSS) for supervisory failures involving a rep that misappropriated millions from his clients. Related news James Langton last_img

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