The MFDA has released new sanctions guidelines which became
effective on November 15 (the "Sanction Guidelines"),
which it has characterized as a principles-based approach to
sanctioning members. It is a shift from the MFDA's historical
approach to sanctioning – they previously outlined specific
fines and penalties for various offences.
The Sanctions Guidelines have list of factors that hearing
panels should consider in determining sanctions. In respect of
fines, the MFDA states "generally, the amount of a fine
should, at a minimum, have the effect of disgorging the amount of
the financial benefit received by the Respondent as a result of the
misconduct" and "the amount of a fine should be
commensurate with the seriousness of the misconduct".
