In the wake of news earlier this week that the Versant Partners Inc. team is joining Cantor Fitzgerald Canada Corp., regulators have granted an exemption to facilitate the possible sale of the rest of the firm.
On Aug. 28, it was announced that Cantor had entered into agreements to hire the sales and trading, research, and investment banking team, and certain other assets, of institutional boutique, Versant Partners. In Thursday’s OSC Bulletin, it’s reported that the Ontario Securities Commission (OSC) has granted relief to allow Versant’s president and CEO, Mike Jams, to retain a role with the firm, while also working for Cantor, so that Versant can maintain its registration and possibly find a buyer.
The decision indicates that the transaction, which is expected to close in early September, is designed to permit Cantor Canada to expand its operations “in a timely and efficient manner”; and that Versant will be granted “inactive status” by the Investment Industry Regulatory Organization of Canada (IIROC) once the deal closes, until March 29, 2013.
The deal announcement earlier this week indicated that Jams is to lead Cantor’s Canadian equity capital markets team. The regulatory relief announced Thursday will allow him to take on that role while also serving as the ultimate designated person (UDP), and an officer and director of Versant, so that it can be granted inactive status and maintain its registration.
“There is a valid business reason for the dual registration in that it will permit Versant to retain its IIROC membership with ‘inactive status’ and its investment dealer registration while it reorganizes its affairs and solicits potential purchasers,” the decision says.
Additionally, it notes that Cantor Canada will supervise Jams’ activities on behalf of Versant, including holding meetings regularly with him and obtaining regular status reports from him.