The Investment Industry Regulatory Organization of Canada (IIROC) has suspended the membership of a Toronto-based firm and ordered it to cease dealing with the public.
Following an expedited hearing held on July 4, an IIROC hearing panel ordered the immediate suspension of the membership rights and privileges of e3m Investments Inc. It further ordered the firm to immediately cease dealing with the public and take down its website.
In addition, the panel ordered e3m to deliver, on a monthly basis, copies of the account statements from its investment account at Caldwell Securities Ltd. to IIROC’s vice resident of financial & operations compliance.
IIROC says its order is not intended to “affect, alter or be inconsistent with the terms and conditions imposed upon e3m by the Ontario Securities Commission”.
In 2013, the OSC granted an exemption allowing e3m to maintain its registration while it reorganized, or searched for a buyer, in the face of a court decision that left the firm with insufficient capital. (See Investment Executive, e3m granted registration exemption, August 29, 2013.)