Mackenzie Investments Asia Limited

Allegations: THE ONTARIO SECURITIES COMMISSION ALLEGED THAT MACKENZIE FINANCIAL CORPORATION FAILED TO (I) COMPLY WITH NATIONAL INSTRUMENT 81-105 MUTUAL FUND SALES PRACTICES ("NI 81-105") BY NOT MEETING THE MINIMUM STANDARDS OF CONDUCT EXPECTED OF INDUSTRY PARTICIPANTS IN RELATION TO CERTAIN SALES PRACTICES BETWEEN MAY 2014 AND DECEMBER 2017; (II) HAVE SYSTEMS OF CONTROLS AND SUPERVISION OVER ITS SALES PRACTICES THAT WERE SUFFICIENT TO PROVIDE REASONABLE ASSURANCES THAT IT WAS COMPLYING WITH ITS OBLIGATIONS UNDER NI 81-105 AND (III) MAINTAIN ADEQUATE BOOKS, RECORDS AND OTHER DOCUMENTS TO DEMONSTRATE ITS COMPLIANCE WITH 81-105. Status: Final Sanction Detail: THE TOTAL AMOUNT LEVIED AGAINST MACKENZIE FINANCIAL CORPORATION WAS $1,050,000 (CANADIAN DOLLARS). ALL AMOUNTS WERE PAID ON APRIL 4, 2018, AS REQUIRED BY THE ORDER AND SETTLEMENT AGREEMENT. Summary: THE ONTARIO SECURITIES COMMISSION ("OSC") INVESTIGATED MACKENZIE FOR SALES PRACTICES RELATED TO MUTUAL FUND PRODUCTS. THE OSC CONCLUDED THAT MFC FAILED TO COMPLY WITH NATIONAL INSTRUMENT 81-105 ("NI 81-105"). THE OSC AND MACKENZIE ENTERED INTO A SETTLEMENT AGREEMENT ON APRIL 6, 2018. THE SETTLEMENT AGREEMENT STATES THAT MACKENZIE FAILED TO COMPLY WITH NI 81-105. THE PURPOSE OF NI 81-105 IS TO DISCOURAGE SALES PRACTICES THAT COULD BE PERCEIVED AS INDUCING DEALERS AND THEIR REPRESENTATIVES TO SELL MUTUAL FUND SECURITIES ON THE BASIS OF INCENTIVES THEY WERE RECEIVING (SUCH AS PROMOTIONAL ITEMS OR ACTIVITIES) RATHER THAN ON THE BASIS OF WHAT IS SUITABLE FOR AND IN THE BEST INTEREST OF THEIR CLIENTS. MACKENZIE AGREED TO: (I) PAY AN ADMINISTRATIVE PENALTY OF $900,000 (CANADIAN DOLLARS); (II) SUBMIT TO REGULAR REVIEWS OF ITS SALES PRACTICES, PROCEDURES AND CONTROLS BY AN INDEPENDENT CONSULTANT; (III) AND PAY COSTS OF THE INVESTIGATION IN THE AMOUNT OF $150,000 (CANADIAN DOLLARS). ALL AMOUNTS HAVE BEEN PAID PURSUANT TO THE SETTLEMENT AGREEMENT.