The Ontario Securities Commission (OSC) has extended its stay of penalties against executives of Toronto-based Northern Securities Inc. (NSI) until next February.

Back in November, the OSC granted an interim stay of penalties levied against NSI and its CEO, Vic Albioni, by the Investment Industry Regulatory Organization of Canada (IIROC), pending an appeal of an IIROC disciplinary decision against them. Initially, it stayed the penalties until Dec. 18 and scheduled a hearing for Dec. 17.

On Monday, NSI’s parent company, Northern Financial Corp. (TSXV:NFC), announced that the commission has granted an extension of the interim stay until February 22, 2013. The hearing and review of the IIROC decision is scheduled to be heard by the commission on February 14, 15 and 20, 2013, it added.

Earlier this 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.

Last week, IIROC imposed conditions on NSI’s continued approval and membership in the self-regulatory organization, while it seeks a new carrying broker arrangement; as its existing carrying broker, Penson Financial Services Canada, is closing up shop at the end of the year.

The conditions include a requirement that it reach an agreement with another dealer by the end of the year to transfer of all of its client accounts from Penson by Jan. 15, 2013; that it cease any sales and advisory activity for retail or institutional customers by the end of the year; and, restrict itself to mergers and acquisitions, research and corporate finance. It was also required to inform clients about the ongoing search for a new carrying arrangement.