The Investment Industry Regulatory Organization of Canada (IIROC) has terminated the membership of Jory Capital Inc. after an IIROC hearing panel accepted a settlement agreement between between the regulator’s staff and the firm.
As part of the agreement, Winnipeg-based Jory admitted that it had failed to maintain sufficient risk-adjusted capital, since October 29, 2012. On the last day that the firm filed a risk-adjusted capital calculation, Nov. 28, 2012, its level of risk adjusted capital was -$248,000. The following day it informed IIROC that it intended to withdraw from the self-regulatory organization.
Under IIROC rules, it can only consider an application for resignation if, among other things, a dealer has adequate liquid assets to meet all its liabilities. In this case, the firm does not have sufficient assets, so it could not consider the application for resignation.
However, due to the risk-adjusted capital deficiency, among other things, on Nov. 22, 2012 the Manitoba Securities Commission (MSC) suspended Jory’s registration as an investment dealer. And, as a result of the MSC suspension, its registration was also automatically suspended in British Columbia, Alberta, and Saskatchewan. The Ontario Securities Commission (OSC) also suspended the firm’s registration in December.
In December, IIROC suspended Jory’s membership and the firm ceased active business operations. All of its client accounts were transferred to MGI Securities Inc. Now, as part of the enforcement settlement, its membership has been terminated.