TORONTO, Dec. 11, 2012 /CNW/ - Northern Financial Corporation (TSX-V:
NFC) ("Northern Financial" or the "Company") announced that its wholly-owned subsidiary, Northern Securities Inc.
("NSI") has been notified of an application ("Application") to be made by
IIROC Staff to a Hearing Panel in an Expedited Hearing to be held on
December 12, 2012.
Further to its press releases dated November 14 and November 26, NSI
continues to seek alternative arrangements in order to replace Penson
Financial Services Canada ("Penson") as NSI's carrying broker. NSI has
been in active discussions with a number of other carrying brokers and
self-clearing firms that could provide NSI with clearing, settlement,
and custodian services. Penson has publicly stated that it proposes to
terminate its main business operations as of December 31, 2012.
The Application requests that, as a condition of NSI's continued
membership, NSI provide written notice to its clients by December 17
that as of December 31, 2012 (unless extended by Penson Financial)
NSI's client accounts will be restricted to sales or transfer-outs,
that clients have the right to transfer their accounts to another
dealer-member, and that clients notify Penson of any transfer no later
December 31 to avoid the application of these restrictions.
NSI confirmed to its counsel that it is in fact sending out such a
letter to clients and its counsel informed IIROC of the proposed
mailing. On December 10, NSI authorized the mailing of the client
letter to its clients through Penson Financial, its carrying broker.
In addition, although not required by IIROC, NSI has posted the letter
on its website.
The Application also requests that, if NSI has not secured a new
carrying broker arrangement or other proposed arrangement, NSI be
suspended. NSI continues to act cooperatively with Penson to secure an
alternative arrangement that is satisfactory to Penson and IIROC. If
an alternative arrangement is secured, NSI will seek an extension of
the December 31 termination date in order for the alternative
arrangement to be implemented.
About Northern Financial Corporation
Northern Financial Corporation wholly owns Northern Securities Inc., a
full service investment dealer that provides financial advisory
services to retail and institutional clients and investment banking
services to small capitalization companies.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release. This press release may contain
forward-looking statements with respect to the Company, its operations,
strategy, financial performance and condition. These statements
generally can be identified by use of forward looking words such as
"may", "will", "expect", "estimate", "anticipate", intends", "believe"
or "continue" or the negative thereof or similar variations. The actual
results and performance of the Company discussed herein could differ
materially from those expressed or implied by such statements. Such
statements are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Important factors that
could cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in the Management's Discussion and
Analysis and Filing Statement of the Company which are available at
www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the Company and persons acting on their
behalf. Unless otherwise stated, all forward-looking statements speak
only as of the date of this press release and the Company has no
obligation to update such statements.
SOURCE: Northern Financial Corporation
For further information:
Director of Business Development