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Order
File No. 201626

IN THE MATTER OF A SETTLEMENT HEARING
PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: WFG Securities Inc.



ORDER


WHEREAS on April 21, 2016, the Mutual Fund Dealers Association of Canada (the
“MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in
respect of WFG Securities Inc. (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the
MFDA, dated April 20, 2016 (the “Settlement Agreement”), in which the Respondent agreed to a
proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20
and 24.1 of By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that the Respondent engaged in the
following contraventions of the By-laws, Rules or Policies of the MFDA:

(a)
between November 1, 2010 and January 31, 2013, the Respondent failed to record
client information and/or transaction details for scholarship plans on its back
office system and/or failed to maintain trade blotters that included scholarship
plan transactions, and thereby failed to facilitate branch and head office
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supervision of the Heritage Plan client account activities, contrary to MFDA Rule
5.1 and MFDA Policy No. 2;

(b)
between November 1, 2010 and January 31, 2013, the Respondent failed to
establish, implement and maintain policies and procedures for the supervision of
client activity in scholarship plans, thereby failing to ensure the handling of its
business was in accordance with the By-laws, Rules and Policies and with
applicable securities legislation, contrary to MFDA Rules 2.5.1, MFDA Policy
No. 2 and MFDA Policy No. 5;

(c)
between November 1, 2010 and January 31, 2013, the Respondent failed to
require its Approved Persons to complete the Respondent’s Know-Your-Client
(“KYC”) forms and/or obtain KYC information for clients opening scholarship
plans, thereby failing to use due diligence to learn the essential facts relative to
each client and to each order or account accepted, contrary to MFDA Rules 2.2.1
and 2.2.2, and MFDA Policy No. 2.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a
consequence of which:

1.
The Respondent shall pay a fine in the amount of $50,000 pursuant to s. 24.1.2 of MFDA
By-law No. 1 upon the acceptance of the Settlement Agreement.

2.
The Respondent shall pay costs in the amount of $10,000 pursuant to s. 24.2 of MFDA
By-law No. 1 upon the acceptance of the Settlement Agreement.

3.
The Respondent shall in the future comply with all MFDA By-laws, Rules and Policies,
and all applicable securities legislation and regulations made thereunder, including MFDA Rules
2.2.1, 2.2.2, 2.5.1, 5.1, and 5.3, and MFDA Policies No. 2 and No. 5.

4.
If at any time a non-party to this proceeding requests production of, or access to, any
materials filed in, or the record of, this proceeding, including all exhibits and transcripts, then the
MFDA Corporate Secretary shall not provide copies of, or access to, the requested documents to
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the non-party without first redacting from them any and all intimate financial or personal
information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.

DATED this 4th day of May, 2016.

“Frederick W. Chenoweth”

Frederick W. Chenoweth,
Chair

“Gunther Kleberg”

Guenther Kleberg,
Industry Representative

“Brigitte Geisler”

Brigitte Geisler,

Industry Representative

DM 481826

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