New details have emerged on sanctions that the Ontario Securities Commission has imposed on Sentry Investments and former Chief Executive Officer, Sean Driscoll.
The OSC has fined Sentry Investments a $1.5-million administrative penalty. It has also placed a two-year ban on Driscoll preventing him from acting as an officer or director, and a five-year ban against serving as an “ultimate designated person” at registered firms. The OSC also ordered Driscoll to resign all directorships with Sentry and other registered investment industry firms.
The OSC Commissioner who approved the settlement, Philip Anisman, called the misconduct “serious” in the hearing Wednesday morning. However, Anisman did praise Driscoll and Sentry for co-operating with the investigation.
"Sentry takes these matters very seriously and accepts full responsibility," said Sentry CEO Philip Yuzpe in a statement, which also pointed out the firm’s funds haven’t been affected by the regulatory situation. "We have learned from this experience and our company will be better for it.”
According to a statement of allegations released late Friday by the OSC, Sentry was accused of failing to put in place between January 2011 and October 2016 “an adequate record keeping system and adequate controls and supervision in relation to its sales practices.”
Driscoll’s actions were also singled out for allegedly providing $28,000 in Montreal Formula 1 race tickets to a dealing representative in April 2015 and 2016, which the OSC states is a breach of rules regarding non-monetary benefits.
Driscoll resigned as CEO of Sentry after the firm began facing OSC scrutiny over compliance issues. He was replaced in January by Philip Yuzpe. The company also hired a third-party consultant to review its policies and practices with a pledge to overhaul its procedures.
Editor’s note: An earlier version of this story indicated Driscoll faces a five-year ban on acting as an officer or director at registered firms. In fact, Driscoll faces a two-year ban. BNN regrets the error.