(January 11 – 11:20 ET) – In a precautionary move intended to protect Canadian investors, the Ontario Securities Commission has imposed Terms and Conditions of Registration on Phoenix Research and Trading Corporation. The terms and conditions have been imposed in the wake of last week’s announcement by the company that it experienced “trading irregularities” in one of its hedge funds.
“Terms and Conditions of Registration are designed to allow companies to continue in business with enhanced supervisory requirements,” says Michael Watson, Director of Enforcement at the OSC. “This will give the staff of the Commission the ability to work closely with Phoenix Research and Trading Corporation to safeguard the interests of investors who deal with the company.”
The Terms and Conditions of Registration provide that Phoenix Research and Trading Corporation must:
1) File with the OSC by February 21, 2000 a written report prepared by a forensic accounting firm acceptable to the Commission which provides a forensic review of all transactions in respect of the irregular trading activities in any funds managed or advised by Phoenix Research and Trading Corporation;
2) Authorize their forensic accountant to report its findings to the OSC;
3) Immediately retain a Monitor acceptable to the OSC to review the adequacy of their trade supervision and risk management policies and procedures and provide a written report to the Commission by January 21, 2000;
4) File with the OSC weekly written reports, commencing January 14, 2000, prepared by the Monitor which examine and assess their compliance with its trade supervision and risk management policies and procedures and report any material changes in respect of their business operations.
-IE Staff