MFDA fines firm $100K for changing branch structure without approval

The MFDA has fined a firm $100,000 for implementing a remote branch structure without receiving approval.

From Jan. 1, 2014 to July 13, 2017, HollisWealth Advisory Services Inc., now Investia Financial Services Inc. and owned by Industrial Alliance, implemented remote supervision as part of its change to a corporate branch management structure, says the MFDA settlement agreement. The implementation occurred in at least 24 branches without first receiving MFDA approval.

The firm had previously sought and received OSC approval to allow its corporate branch managers to be dually licensed at the firm and at its IIROC-registered affiliate securities dealer, the settlement agreement says.

“However, [HollisWealth] acknowledges that it did not seek approval from the MFDA to allow its corporate branch managers to supervise remotely, as it was required to do,” the agreement says.

In addition to the fine, the firm must pay costs of $10,000.

For full details, read the settlement agreement.

Staff

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