The Ontario Securities Commission (OSC) has suspended the registration of one exempt market dealer (EMD) and placed terms and conditions on the registration of another.

The OSC suspended the registration of Fast Track Capital Inc., in the wake of suspensions that were handed down by regulators in Alberta, BC, Manitoba and Saskatchewan on Dec. 31. The OSC says the firm consented to those suspensions in the wake of a compliance report by the Alberta Securities Commission (ASC), which, “identified numerous significant deficiencies in Fast Track’s compliance with Alberta securities laws.”

On Jan. 18, the OSC notified the firm that its staff had recommended that its registration be suspended in Ontario, too.

The OSC says that the firm declined to exercise its right to a hearing to challenge that recommendation. As a result, the OSC ruled that its registration is suspended.

Separately, the commission also decided to impose terms and conditions on the registration of another EMD, Trafalgar Associates Limited, for not filing its annual audited financial statements until Dec. 18, 2012, when they were due by March, 30, 2012. The conditions require the firm to deliver monthly year-to-date unaudited financial statements and capital calculations for six months starting Feb. 28; and that the firm review its compliance procedures and provide a report to the OSC.

The decision notes that the commission first flagged the issue last May, and ordinarily would have imposed conditions on the firm’s registration then, but it held off as “there was some confusion” about whether the firm had requested a hearing in a timely way.

Ultimately, the OSC did request a hearing in January. And, according to the decision, the firm explained the late delivery was due to its auditor waiting for the completion of an audit by the Canada Revenue Agency (CRA), which was expected to affect the financials.

The commission reports that its staff argued that the delivery of annual audited financial statements is a serious regulatory obligation, which allows it to monitor firms’ financial viability and capital position, so it normally imposes conditions when they are not delivered on time. It ruled that the explanation provided by the firm “does not constitute rare and extenuating circumstances such that the terms and conditions should not be imposed.” It said a CRA audit should not preclude the preparation of audited financial statements.