Enforcement Roundup – July 2019
In this edition of the Enforcement Roundup, we cover one British Columbia Securities Commission (BCSC) sanctions decision, an alleged breaching of a BCSC order, and one BCSC settlement agreement. We also look at one settlement agreement of the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Sanctions Decision
A BCSC panel temporarily banned B.C. man – Liu – and two companies from the securities market. The panel also imposed a total of $426,063 in monetary sanctions against them for facilitating trades in securities without being registered to do so under the Securities Act.
Liu and NuWealth are prohibited for two years and CPFS for one year from various securities market activities.
Liu and NuWealth were also ordered to pay a total of $326,063, representing the amount in commissions they earned without being registered. In addition, Liu, NuWealth and CPFS were ordered to pay a total of $100,000 in administrative penalties ($40,000 each from Liu and NuWealth, and $20,000 from CPFS).
View the news release for full details on the sanctions.
Burnaby woman – Keller – allegedly breached an order of the BCSC and has been charged with violating the Securities Act after an investigation by the BCSC’s Criminal Investigations branch.
Keller made her first court appearance in on July 11, 2019 on two counts of trading in a security and/or acting in a consultative capacity in connection with activities in the security market while prohibited from doing so.
Refer to the BCSC’s Criminal Enforcement page for more details on this case.
BCSC Settlement Agreement
The BCSC reached a settlement with Genus Capital Management Inc. – an investment management firm based in Vancouver – for misusing client brokerage commissions.
As part of the settlement, Genus agreed to repay $1.67 million to current and former clients. The firm must also pay $350,000 to the BCSC.
As a part of the settlement agreement, Genus must disclose the compliance failures to its current and former clients, and hire an independent compliance monitor for at least one year to review their soft dollar and conflicts of interest practices.
For more details on the settlement agreement see the news release.
MFDA Settlement Agreement
In the MFDA settlement agreement, Wilson admitted that he contravened a member’s policies and procedures and an MFDA Rule. Wilson did business in the Vernon, B.C. area.
An MFDA panel fined Wilson $11,000, and ordered $2,500 in costs. He was also ordered to comply with MFDA rule he contravened.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.