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The Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a hearing to suspend Toronto-based brokerage firm Dominick Capital Corp. (DCC) amid concerns about the firm’s capital position and solvency.

IIROC will hold a hearing on Aug. 16 at its offices in Toronto to consider an application from the self-regulatory organization’s staff for an order suspending the firm.

According to the application, the firm, which has been in early warning over its capital position since June, reported a negative capital position on Aug. 6. The firm has also reported that it doesn’t have any sources of capital to fix the deficiency, IIROC said.

“DCC is capital deficient and as such is in financial difficulty that poses a risk of imminent harm to its clients, other dealer members and IIROC,” the SRO said in its application. “The capital deficiency indicates that there is a risk of insolvency which poses a potential financial risk to DCC’s clients and a reputational risk to IIROC and other [dealers].”

The firm’s carrying broker, Laurentian Bank Securities Inc., holds the $55 million in assets that the firm is managing on behalf of 261 clients.

“Laurentian will maintain DCC’s accounts once it is suspended and will assign a representative to handle instructions for liquidating trades and transfer requests from clients,” IIROC said in its application, adding that it has also directed the firm to inform clients of the pending suspension.

According to DCC’s website, the firm commenced operations in Canada in 1929.