The Ontario Securities Commission (OSC) has issued a temporary cease trade order against ASL Direct Inc, the commission announced today.

ASL is registered with the OSC as a mutual fund dealer and a limited market dealer, and is a member of the Mutual Fund Dealers Association of Canada (MFDA).

According to a news release, the OSC is investigating the conduct of ASL and in regard to concerns that it may have participated in the distribution of securities in the Future Growth Group of Funds without a prospectus and without an exemption to the requirement for a prospectus.

In addition, ASL may have failed to comply with its obligations as a registrant contrary to Ontario securities law, the OSC said.

On April 22, 2008, the OSC also issued a temporary cease trade order respecting the principal of ASL, Adrian Leemhuis and the Future Growth Group of Funds. The orders were obtained in the course of investigations conducted by staff of the OSC, the Autorité des marches financiers (Québec) and the MFDA.