The Ontario Securities Commission (OSC) has extended its stay of penalties handed down against executives of Toronto-based Northern Securities Inc. (NSI) until after it releases a decision following its review of the original disciplinary decision against them.
The OSC issued an order Thursday that stays the sanctions and penalties imposed by a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) against NSI and its CEO, Vic Albioni, and two other executives of the firm back in November. It has twice stayed the penalties pending the OSC’s review of the IIROC decision.
The OSC announced that the penalties are now stayed until 30 days after the issuance of its decision and reasons in a review of the case that was held on Feb. 14, 15 and 20; or until further order of the commission. In its order, the panel notes that the firm and executives, and IIROC and OSC staff agreed that the interim stay should be continued.
Last year, an IIROC hearing panel found that the firm and the executives contravened several IIROC rules; and, as a result, in addition to fines and costs orders against the firm and the executives, the IIROC panel imposed a two-year registration ban on Albioni, and permanently banned him from serving as an ultimate designated person (UDP) in the industry.
Earlier this year, IIROC announced new allegations against NSI, charging that it has been operating with a capital deficiency over the past couple of months. A hearing into those allegations has yet to be held, and the allegations have not been proven.
In the meantime, the firm has had its business curtailed, as it was forced to hand off its retail and institutional accounts to other firms after its former carrying broker decided to discontinue operations, and it was unable to obtain a new carrying broker.
NSI is a subsidiary of Northern Financial Corp. (TSXV:NFC).