TORONTO, March 9, 2012 /CNW/ - Return On Innovation Management Ltd. (www.roicapital.ca) ("ROI") is an investment firm with over $1.5 billion in assets under management whose core business focuses on private placement investments available through an Offering Memorandum.
As a result of a normal course field audit, the Ontario Securities Commission ("OSC") has placed terms and conditions on ROI. The field audit did not result in any referrals of issues to the Enforcement Branch of the OSC and therefore no penalties or fines are being contemplated, nor has the OSC directed ROI to halt subscriptions into the funds.
The OSC's terms and conditions on ROI's registration include the agreement to hire a compliance consultant to aid in the implementation of a more robust compliance program. The integrity of the funds, their valuation, and ROI's business model remains intact.
Yesterday, a bank decided to halt purchases into the ROI funds, resulting in an abnormal inflow of redemptions uncorrelated to the integrity of the funds. As a result ROI has decided to temporarily halt redemptions of its offering memorandum funds.
While the decision to halt redemptions is difficult, management believes it is in the best interest of investors as preserving the integrity of the funds and ensuring that all unitholders are treated fairly is paramount. The Manager will continue to manage the funds with the same level of integrity and expertise as it has in the past. ROI expects to lift the suspension of redemptions once it has considered the optimal future approach for the private funds, having regard to the best interests of those funds. The decision to suspend redemptions of the private funds does not affect ROI's mutual funds or labour sponsored fund.
About ROI Management
Established in 2002, ROI Management Ltd. has grown from a single fund to a range of products for investors. ROI Management's investment solutions include a tax credit fund, mutual funds and private placements funds. Today, we manage over $1.5 billion in assets across 10 funds.
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