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Sunday, July 21, 2019

NBSC fines WFG Securities for unregistered office in Fredericton


Date: Friday, June 25, 2010
Author: Investment Executive

WFG Securities of Canada Inc. and a company employee have been reprimanded and the company was ordered to pay an administrative penalty of $20,000 for operating a branch office in Fredericton without proper registration and supervision.

On June 21, a New Brunswick Securities Commission (NBSC) panel approved a settlement agreement reached between NBSC staff and the parties.

NBSC staff discovered the deficiencies concerning the Fredericton branch while looking into an inquiry from a member of the public.

Once the issues were brought to the attention of WFG Securities of Canada Inc., the company acted quickly to register the branch and put in place a suitable supervision arrangement, the NBSC said.

“The proper registration of capital markets participants is the foundation for securities regulation and a key component in investor protection,” said Rick Hancox, executive director, NBSC.

The mutual funds salespersons operating out of the Fredericton branch were registered with the NBSC, but they were incorrectly registered as working out of the Moncton office.

There is no evidence or allegation that any investors were harmed as a result of the deficiencies identified in the settlement agreement, and WFG Securities of Canada Inc. cooperated fully with staff throughout the matter, the NBSC said.