Order

WHEREAS on December 16, 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 HollisWealth Advisory Services Inc. (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated January 26, 2017 (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:

1. between November 5, 2004 and May 20, 2014, failed to adequately supervise former Approved Persons BY and SW to ensure that accurate Know-Your-Client information was recorded for clients, and the trades recommended by BY and SW which concentrated the clients’ investments in precious metals sector funds were suitable for clients, contrary to MFDA Rules 2.2.1, 2.5.1 and 2.1.1, and MFDA Policy No. 2;
2. between November 7, 2010 and May 20, 2014, created and arranged for Approved Persons BY and SW to have clients sign an Acknowledgement and Release which, among other things, released the Respondent from any claims or losses arising from an investment strategy recommended by BY and SW which concentrated the clients’ investment holdings in precious metals sector funds and may have been unsuitable for the clients, contrary to MFDA Rules 2.2.1, 2.1.2 and 2.1.1; and;
3. between February 27, 2007 and April 30, 2013, failed to adequately supervise former Approved Person RL to ensure that accurate Know-Your-Client information was recorded for each client, and the trades recommended by RL which concentrated the clients’ investments in precious metals sector funds were suitable for clients, contrary to MFDA Rules 2.2.1, 2.5.1 and 2.1.1, 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 of $130,000 pursuant to s. 24.1.2(b) of MFDA By law No. 1;

2. The Respondent shall pay costs of $20,000 pursuant to s. 24.2 of MFDA By law No. 1;

3. The Respondent shall in the future comply with MFDA Rules 2.1.1, 2.1.2, 2.2.1, 2.5.1, and MFDA Policy No. 2; and

4. If at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.