Canada’s biggest securities regulator, the Ontario Securities Commission (OSC) is seeking to reciprocate an enforcement order handed down by regulators in the country’s smallest province, PEI.
The OSC said Thursday that it is seeking a reciprocal order against a firm, Capital Markets Technologies, Inc. (CMT), that entered into a settlement agreement with the PEI Superintendent of Securities last year. That settlement resulted in sanctions for CMT, and OSC staff are now seeking an inter-jurisdictional enforcement order reciprocating the PEI order in Ontario.
According to the OSC’s allegations, CMT was sanctioned for raising approximately $700,000 from 36 investors in PEI without a prospectus, or proper reliance on an exemption. As a result, it was banned from relying on prospectus exemptions for five years, and ordered to pay a $10,000 penalty, among other measures.
OSC staff are now alleging that it is in the public interest to make an order against CMT, too. Its allegations have not been proven. A hearing has been set for June 26.
Earlier this year, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) also settled with a registered rep, John Shane MacEachern, who admitted that he recommended and facilitated an investment in securities offered by CMT without the consent or knowledge of his dealer. He agreed to pay a $25,000 fine; six months of strict supervision; and, that he retake the Conduct and Practices Handbook Course.