The July edition of the Enforcement Roundup covers recent enforcement news from the BC Securities Commission (BCSC) and the Canadian Investment Regulatory Organization (CIRO). It also includes four new additions to the Investment Caution List.
BCSC Orders and Decisions
A BC marketing company, Stock Social Inc., and its CEO must pay $50,000 and $25,000, respectively, for not adequately disclosing that the company distributed paid promotional material on behalf of five issuers.
A BCSC panel has also ordered one of those issuers, virtual reality production company, ImagineAR Inc., to pay $20,000 for failing to ensure that promotional material clearly disclosed that it was issued on its behalf.
BCSC Settlement Agreements
A former Vancouver Island portfolio manager has agreed to pay $60,000 for steering clients into an unsuitable investment. As a portfolio manager with Fieldhouse Capital Management Inc., Qualicum Beach resident, MacSween was responsible for managing the Class M Global Macro Core Fund.
A BCSC compliance review of Fieldhouse in August 2021 revealed that 16 of MacSween’s clients invested approximately $4.3 million in Class M, even though the fund was too risky for them and unsuitable for their personal and financial circumstances.
As part of the settlement agreement, MacSween is prohibited for eight years from:
- Becoming or acting as a registrant or promoter, and
- Engaging in promotional activities by – or on behalf of – an issuer, security holder or party to a derivative, or another person that would benefit from such activity.
CIRO Settlement Agreements
Mauro admitted to failure in using due diligence to ensure that his investment recommendations were suitable for his client. The respondent has agreed to the following sanctions:
- A fine in the amount of $30,000
Mauro also agreed to pay costs in the amount of $5,000.
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 BC residents as clients.
Below are the July additions to the Investment Caution List.
Alphas claims to be located in London, UK. It claims to offer trading services in stocks, crypto, commodities, indices, forex, metals, and NFTs.
TRXFO claims to be located in London, UK. It claims to offer trading services in crypto, stocks, commodities, and currencies.
Alliance Swipe claims to offer institutional and retail trading services to businesses and traders worldwide.
Frextrustinc Ltd. claims to be a registered company in the United States and it also claims to offer investment plans for bitcoin trading.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Contact Centre 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.