Sentry Investments is shedding more light on the circumstances that led to a change in its corner office.
The investment manager said in a statement Friday afternoon that it formed a special committee last September after it received "regulatory inquiries concerning the company's compliance with Nation Instrument 81-105 - Mutual Fund Sales Practices, and the commencement of an investigation by the Ontario Securities Committee." The special committee was tasked by Sentry with reviewing "compliance issues" pertaining to sales practices.
Sentry said appointing Philip Yuzpe (who had been serving as president and chief operating officer) as its chief executive officer was among the corrective actions taken as a result. Sentry originally announced Yuzpe was replacing Sean Driscoll as CEO in a statement on Jan. 16. At that time, the firm said Driscoll, the son of Sentry Founder and Chairman John Driscoll, was leaving to focus on duties with his family holding company. In the same press release, Yuzpe hailed Sean Driscoll as "a very successful business builder" who led the doubling of Sentry's assets under management from $9 billion to $18 billion.
Sentry also disclosed in its statement on Friday that a third-party compliance consultant has been retained to "review and recommend improvements to Sentry's internal policies, procedures and practices, and internal controls"; adding the firm is committed to implementing all of the consultant's recommendations.
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