The collection rate for fines also increased, from 29% in 2020 to 45% in 2021. This is significantly higher than the 16% of the total of $105 million in fines issued by the MFDA since 2004.
The nature of the top 5 primary allegations made in cases opened at the case assessment stage were:
- Business standards
- Suitability of investments
- Unauthorized/discretionary trading
- Transfer of accounts
- Pre-signed forms
Banned or suspended
There were 19 permanent bans and 35 suspensions issued in 2021, up from 16 and 24 respectively in the prior year. Four educational course requirements were issued.
“I am pleased to present the Annual Enforcement Report for 2021 which sets out the accomplishments of the MFDA Enforcement Department which continues to effectively fulfill its investor protection mandate by holding those who breach MFDA rules accountable,” said MFDA President and CEO Mark Gordon.
Along with IIROC, which also boosted its enforcement action in the most recent period, the MFDA will form the new SRO which will be led by IIROC chief Andrew J. Kriegler as its CEO.
