IN THE MATTER OF Peregrine Financial Group Canada, Inc. - Suspension
TORONTO, July 19, 2012 /CNW/ - Following an expedited hearing held on July 19, 2012, in Toronto, Ontario, with notice to Peregrine Financial Group Canada, Inc. (Peregrine), a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) ordered the following:
Peregrine's Membership is, on consent, immediately suspended;
Peregrine is directed to immediately cease dealing with the public as a
Dealer Member, including removing any websites from public access;
Notwithstanding any other provisions of this Order, Peregrine is
authorized and entitled but, subject to paragraph 7 hereof, not
obligated to pay its reasonable operating expenses including without
limitation severance payments, wages for Peregrine staff, lease
payments, legal costs and storage costs after providing IIROC's Vice
President, Financial and Operations Compliance (IIROC VP Operations)
with prior written notice of such payments.
Peregrine is restricted from undertaking any of the following activities
without first obtaining the written consent of IIROC's VP Operations:
(a) reducing its capital in any manner including redemption, repurchase or cancellation of any of its shares;
(b) reducing or repaying any indebtedness which has been subordinated with the approval of IIROC;
(c) directly or indirectly making any payments by way of loan, advance, bonus, dividend, repayment of capital or other distribution of assets to any director, officer, partner, shareholder, related company or affiliate; and
(d) increasing non-allowable assets, unless a prior binding commitment to do so exists, or entering into any new commitments which would have the effect of materially increasing the non-allowable assets of the firm;
Peregrine shall work with IIROC staff to plan and effect steps for an
orderly wind-down, through a liquidation or other similar process
acceptable to IIROC staff, which steps shall be initiated in a manner
satisfactory to IIROC staff no later than August 20, 2012, failing
which IIROC staff may appear before a Hearing Panel for further orders
Peregrine shall preserve all books and records, including all hard copy
and electronic records in Peregrine's possession or control (including
any computer servers, hard drives and any other electronically stored
records in any form) (the Records) for a period of nine months or
pending further order of a Hearing Panel, which Records shall be made
available to IIROC staff on demand within a reasonable timeframe;
Peregrine shall maintain the Records at its office premises at 1290
Central Parkway West, Suite 200, Mississauga, Ontario, and shall pay
any and all costs required for the purpose of that maintenance, for the
period set out in paragraph 6 hereof, and the Records shall not be
moved or altered without notice and approval of IIROC staff; and
- Upon IIROC staff's satisfaction that necessary wind-up steps have been effected, IIROC staff may move without notice to Peregrine for an order terminating Peregrine's Membership.
The Order is effective immediately.
The Hearing Panel's Order is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=A46E0E92765743A5A14554B28A62817C&Language=en
The Notice of Application is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=0C0806CA248442E4886AFCAF89757A34&Language=en
Documents related to ongoing IIROC enforcement proceedings - including Reasons and Decisions of Hearing Panels - are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1.877.442.4322.
For further information:
Vice President, Enforcement
Director, Public Affairs