In this edition of the Enforcement Roundup, we discuss two enforcement actions from the British Columbia Securities Commission (BCSC) and additions to the Investment Caution List. We also highlight one settlement agreement from the Mutual Fund Dealers Association (MFDA).
BCSC Settlement Agreements
Blair, the Chief Investment Officer at CWB Wealth Management Ltd., must pay $30,000 in a settlement with the BCSC for advising in securities without being registered.
Since May 2018, Blair was in the business of advising because he held himself out as a portfolio manager. His duties included managing and selecting individual securities for the firm’s Canadian Equity Portfolio, overseeing research analysts and the firm’s investment processes, and chairing its investment committee.
Blair, who was registered under the Securities Act from 2004 to 2005, was not registered while performing these duties. When he applied for registration as a portfolio manager in October 2021, the BCSC notified him that he was offering services requiring registration. He stopped conducting business that required registration when told by the BCSC in March 2022. Blair has no other history of securities misconduct.
Read the news release for full details.
Hello Pal International Inc. and its then-communications officer, Johnson, must pay a combined $35,000 in a settlement with the BCSC for not disclosing that advertorials and promotional Twitter posts were issued on the company’s behalf.
Under the settlement, Hello Pal must pay $25,000 to the BCSC, and Johnson, of North Vancouver, must pay $10,000.
The Securities Act requires anyone engaged in investor relations activities, or who is doing so on behalf of an issuer or security holder, to clearly and conspicuously disclose when promotional materials are issued by them or on their behalf.
Read the news release for full details.
MFDA Settlement Agreement
Salina, who conducted business in the Victoria, B.C. area, admitted to contravening various MFDA rules.
Salina must pay a $30,000 fine and $5,000 in costs, and shall comply with the contravened rules in the future.
Read the news release for full details
BCSC Early Intervention
Investment Caution List
The BCSC publishes an Investment Caution List to notify British Columbians about unqualified investments and unregistered activity originating from outside of the province that accept B.C. residents as clients.
Below are 17 additions to the Investment Caution List in July 2022.
WorldFx BtcTrades claims to be located in the United States and claims to offer investment plans for cryptocurrency and forex trading.
FinoMarkets claims to be located in the United Kingdom and it also claims to offer accounts for trading in CFDs, forex and cryptocurrencies.
DGTL claims to offer accounts for trading in forex, commodities, indices and cryptocurrencies.
Forex Crypto Investment claims to be located in New York and it claims to offer futures trading in commodity, stock, forex and cryptocurrency.
Edigitalfxtrade claims to offer different types of accounts for cryptocurrency trading.
Bitonext claims to be located in the United Kingdom and it also claims to offer accounts for trading in forex, indices, shares, commodities and cryptocurrencies.
Helius Capital Limited claims to be located in Singapore and it also claims to offer trading services in over-the-counter derivatives.
First Scrap Global Inc. claims to be incorporated in the United Kingdom and British Columbia (B.C.). It also claims to offer investment plans with different rates of return.
CoinRise claims to be located in Canada and it also claims to offer a personalized wealth management strategy using a wide range of financial products and services.
BtcMarketCap claims to have offices in Australia, Canada and Germany. It also claims to offer accounts for trading in forex, stocks, and cryptocurrencies.
AIG Markets claims to be located in London, England and it also claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.
Trade Defi claims to be based in St. Vincent and the Grenadines and it also claims to offer different types of accounts for cryptocurrency trading.
Brooks Invest Ltd claims to be located in Vanuatu and it also claims to offer investment plans in cryptocurrency trading with different rates of return.
Bloom Finance claims to be based in the UK and it also claims to offer accounts for trading in forex, stocks, and cryptocurrencies.
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 by e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.