The WFG acknowledged in the agreement that it had not properly controlled the activities of some vendors with respect to the accounts financed by the loan. The agreement stipulated that audit vendors who recommend that clients borrow money for an investment strategy that was “inappropriate given the personal circumstances of the clients.” The settlement agreement with the largest amount ever reached by msc came seven years after the Commission began reviewing WFG files in Winnipeg. According to the agreement, inaccurate “Know Your Client” forms were found in a large number of clients where the investor`s knowledge, income, risk tolerance or investment objectives were misrepresented. “Nine debt-financed accounts have been identified as insolvent, insolvent or with credit problems,” he said. Between November 1, 2010 and January 31, 2013, the respondent failed to record customer information and/or transaction details relating to exchange plans on its back office and/or to maintain business errors containing trading in the stock exchange plans, thereby facilitating the tracking of the activities of the HERITAGE MFDA REGIME client account, Rule 5.1 and MFDA Directive No. 2; The agreement states that 41 complaints remained open until March 2014. According to the agreement, “WFG has taken corrective action, including changes in local management and educational institutions, and has updated its systems and practices.” TORONTO, May 4, 2016 /CNW/ – A comparative hearing in WFG Securities Inc. (the “respondent”) was held today in Toronto, Ontario, before a three-member hearing committee of the Central Regional Council of the Mutual Donor Association of Canada (MFDA). The hearing body accepted the transaction agreement (the “implementation agreement”) between MFDA staff and the respondent and, therefore, between November 1, 2010 and November 31, 2010. January 1, 2013 it has not established, implemented and maintained guidelines and procedures for monitoring client activity in stock exchange plans and therefore does not guarantee that the management of their transactions is in compliance with by-laws, securities rules and policies, which is contrary to the rules of MFDA 2.5.1, MFDA No. 2 and MFDA Directive 5; According to the agreement, WFG`s sellers did not properly explain to customers, in a considerable number of cases, the risks associated with the borrowed accounts.
An external company, which audited 548 accounts financed by the loan from the WFG, found 86 percent of the files in need of remediation, according to the agreement.