(July 13 – 11:55 ET) – The National Post is reporting that the Ontario Securities Commission is quietly closing the boiler room business in Ontario.
The newspaper reports that Gordon-Daly Grenadier Securities and Price Warner Securities Ltd. are expected to close soon after receiving letters from the OSC giving them 60 days to provide accountings of their business or face a hearing before the OSC. It also notes that the OSC is talking with brokers at Arlington Securities Inc. and Barnet Magrill Investments Ltd. who’ve applied to move their registrations elsewhere. Chartwell Securities is said to be winding up, too.
“The OSC is aware that Gordon-Daly is winding up its business,” Frank Switzer, OSC manager of corporate relations is quoted as saying. “More information will be available shortly. The commission is involved in the appropriate manner.” He refused further comment.
The OSC has been working to clean up the penny stock business for some time, since it succeeded in shutting Marchment and Mackay. The OSC has since said it will automatically review registration renewals from all former Marchment brokers.
The penny stock business has been imperiled ever since the OSC proposed rules that will require dealers to join either the Investment Dealers Association or the soon-to-be-launched Mutual Fund Dealers Association. The non-SRO dealer categories will be reduced to limited market dealers and scholarship plan dealers.
-IE Staff