The Mutual Fund Dealers Association (MFDA) has released a report detailing its enforcement activities during 2014. It shows that the regulator has only been able to collect about 2% of the penalties it has handed out.

In a press release announcing the publication of its enforcement report for last year, the MFDA highlighted the fact that it had assessed fines totalling $7,549,500 and total costs of $279,500 against various MFDA member firm and advisors over the course of the last year. What the press release did not mention, however, was that $7,486,000 of these fines were imposed on people or firms that are no longer registered, and that in fact the regulator has only recovered $104,500 of this amount, as well as $63,000 from advisors who are still registered.

"The MFDA has powers to collect fines from Respondents who remain in the industry as Approved Persons, but does not have the ability to collect fines from former Approved Persons, except in the province of Alberta where MFDA Staff makes all reasonable collection efforts," explains the regulator on page 14 of the report. "In 2014, MFDA Staff collected $32,500 from current and former Approved Persons in Alberta. The MFDA also pursues options for collecting costs from former Members or Approved Persons as applicable law may permit."