rules-regualtion-comply

The MFDA has fined HollisWealth Advisory Services Inc. for failure to supervise approved persons and for inappropriate business conduct regarding an acknowledgement and release.

In Toronto on March 7, 2017, a three-member hearing panel imposed:

  • a fine of $130,000;
  • costs of $20,000; and
  • future compliance 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, HollisWealth admitted that between November 5, 2004, and May 20, 2014, it failed to adequately supervise former approved persons B.Y. and S.W. to ensure they recorded accurate KYC information and that the trades B.Y. and S.W. recommended, which concentrated clients’ investments in precious metals sector funds, were suitable for clients. MFDA says that conduct was contrary to MFDA rules 2.2.1, 2.5.1 and 2.1.1, and MFDA policy no. 2.

HollisWealth also admitted that between November 7, 2010, and May 20, 2014, it created and arranged for B.Y. and S.W. to have clients sign an acknowledgement and release, which, among other things, released HollisWealth from any claims or losses arising from an investment strategy recommended by B.Y. and S.W., which concentrated clients’ investment holdings in precious metals sector funds. That conduct, MFDA says, was contrary to MFDA rules 2.2.1, 2.1.2 and 2.1.1.

Finally, HollisWealth admitted that between February 27, 2007, and April 30, 2013, it failed to adequately supervise former approved person R.L. to ensure that accurate KYC information was recorded for each client, and the trades recommended by R.L., which concentrated clients’ investments in precious metals sector funds, were suitable for clients. That conduct was contrary to MFDA rules 2.2.1, 2.5.1 and 2.1.1, and MFDA policy no. 2.

Read the full settlement agreement.

Originally published on Advisor.ca

Add a comment

You must be logged in to comment.

Register on Advisor.ca