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Toronto (Ontario), March 25, 2024 – Following a settlement hearing held under the Mutual Fund Dealer Rules on February 28, 2024, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) found that TD Investment Services Inc. (TDIS) failed to implement adequate policies, procedures, and internal supervisory controls with regards to complaint handling, the investigation and resolution of potential Approved Person misconduct, and the identification of events to be reported to CIRO (formerly the MFDA) to ensure it complied with its obligations to make mandatory reports to CIRO on the Member Event Tracking System and to conduct adequate or timely supervisory investigations.
The hearing panel issued its reasons for decision on March 12, which are available at:
Re TD Investment Services Inc. 2024 CIRO 38
In its reasons for decision, the hearing panel confirmed the sanctions imposed on TDIS. In particular:
- TDIS shall pay a fine in the amount of $300,000
- TDIS shall in the future comply with Mutual Fund Dealer Rules 1.4(a), 2.5.1, 2.11, 300, and 600 (formerly, MFDA Rules 1.4(a), 2.5.1, and 2.11 and MFDA Policy Nos. 3 and 6).
TDIS is also required to pay costs in the amount of $25,000.
TD Investment Services Inc. is a Dealer Member registered as a mutual fund dealer and is registered under securities legislation in all Canadian provinces and territories.
All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.
Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.
CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.
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