January 25, 2017 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.
The settlement agreement will be between Staff of the MFDA and HollisWealth Advisory Services Inc. (the “Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns allegations that:
- between November 5, 2004 and May 20, 2014, it 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;
- between November 7, 2010 and May 20, 2014, it 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, contrary to MFDA Rules 2.2.1, 2.1.2 and 2.1.1; and
- between February 27, 2007 and April 30, 2013, it 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.
The settlement hearing is scheduled to take place on March 7, 2017, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 121 King Street West, Suite 1000, Toronto, Ontario.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.
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