Sentry Investments to pay $1.5M to settle charges of improper sales practices
Posted April 5, 2017 5:48 pm.
Last Updated April 5, 2017 6:40 pm.
This article is more than 5 years old.
TORONTO – Sentry Investments says it will pay a penalty of $1.5 million to the Ontario Securities Commission to settle allegations that it engaged in improper sales practices by giving extravagant gifts to dealers selling its financial products between 2011 and last year.
The Toronto investment firm says it has also agreed to pay OSC investigation costs of $150,000 and replace CEO Sean Driscoll — in January, it appointed president and chief operating officer Philip Yuzpe in Driscoll’s place.
The commission says Sentry gave “excessive non-monetary benefits” to dealing representatives at a mutual fund conference at a Beverly Hills mansion in 2015 — including dinner, an open bar, Dom Perignon, jewelry and free golf, adding up to more than US$1,000 per guest.
Sentry was also accused of providing gifts such as concert and sporting event tickets, including Montreal Grand Prix Formula One race tickets, as well as birthday, Christmas and baby gifts, to top sellers of Sentry products.
In a news release, Yuzpe says Sentry accepts full responsibility and has hired a consulting firm to review and recommend improvements to policies, practices and internal controls.
The OSC says Driscoll agreed to pay Sentry $100,000 in a reparation payment, is prohibited from acting as a mutual fund company director or officer for a number of years and must take a course on regulatory compliance.
“We have learned from this experience and our company will be better for it,” said Yuzpe in Sentry’s statement.
