MFDA Hearing Panel accepts settlement agreement with HollisWealth Advisory Services Inc.
March 14, 2017 (Toronto, Ontario) – A settlement hearing in the matter of HollisWealth Advisory Services Inc. (the “Respondent”) was held on March 7, 2017 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement (the “Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following penalties and costs were imposed:
- a fine in the amount of $130,000;
- costs in the amount of $20,000; and
- shall in future comply with MFDA Rules 2.1.1, 2.1.2, 2.3.1 and 2.2.1, and MFDA Policy No. 2.
In the Settlement Agreement, the Respondent admitted 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.
A copy of the Settlement Agreement is available on the MFDA website 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.
DM 529139 v1