(December 15 – 09:30 ET) – FundEX Investments Inc. of Markham, Ont. has agreed to pay $70,000 in penalties and costs to the B.C. Securities Commission for trading in mutual funds without being registered in B.C.

The BCSC says that FundEX opened mutual fund trading accounts for at least 286 B.C. clients and made trades worth more than $1.3 million on their behalf, despite not being registered in B.C. in any capacity. The trades earned FundEX at least $60,000 in commissions since January 1999.

The BCSC’s investigation determined that FundEX also traded in Alberta, Saskatchewan, Quebec, Nova Scotia and PEI between August 1995 and July 2000 without being registered in those provinces.

In its settlement with the BCSC, FundEX agreed to seek registration as a mutual fund dealer in B.C. It has stopped accepting B.C. clients, although it has received an exemption allowing it to continue servicing its existing B.C. clients until January 31, 2001.

FundEX also recently settled with the Alberta Securities Commission and Saskatchewan Securities Commission regarding its unregistered activities.
-IE Staff