MFDA Hearing Panel approves settlement agreement with FundEX Investments Inc.

a) 

between June 2011 and April 2012, it failed to adequately supervise its Approved Person Christopher Singer's recommendation to a client for the purchase of an exempt market product, which recommendation was unsuitable for the client having regard to concentration and the client's Know-Your-Client information, including but not limited to the client's investment knowledge and experience, and time horizon, contrary to MFDA Rules 2.2.1 and 2.1.1;

b)

between November 2007 and approximately February 2014, it did not have adequate procedures in place to monitor all of the holdings in its client accounts held at Canadian Western Trust, and did not identify the sale of unapproved products in the accounts of two clients, contrary to MFDA Rule 2.5.1;

c)

commencing in 2011, it failed to ensure that complaints from two clients regarding its Approved Persons Stuart Henschel and William Cormylo, were handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3;

d) 

between June 2013 and April 2017, it failed to conduct adequate supervisory investigations to review and resolve suitability and concentration of precious metal sector funds concerns it identified in client accounts serviced by four Approved Persons, contrary to MFDA Rules 2.2.1 and 2.5.1;

e) 

between March 28, 2016 and May 1, 2018, it failed to ensure that a complaint from a client regarding its Approved Person Ronald Schwartz was handled fairly, contrary to MFDA Rule 2.11 and MFDA Policy No. 3; and

f) 

between August 2009 to November 2013, it maintained a branch review program that did not ensure that in all instances an on-site compliance review of all of its branches was conducted at least once every three years, in accordance with MFDA Policy No. 5 and MFDA Rule 2.5.1.