The Ontario Securities Commission (OSC) has extended its temporary order imposing restrictions on the registration of Toronto-based Pro-Financial Asset Management Inc.
The OSC issued an order extending a temporary order against Pro-Financial to June 27, vacating a planned hearing that was set for May 30, and setting a hearing for June 26 to consider any further orders regarding its registration.
According to the commission, the firm consented to the extension of a temporary order that was initially issued on May 17, suspending its exempt market dealer registration; and imposing conditions on its portfolio manager registration, which require that it not accept any new clients for its managed accounts, and that its portfolio and fund management activities be applied exclusively to the managed accounts and to the Pro-Hedge Funds and Pro-Index Funds.
No allegations have been made against the firm, but the OSC notes that it appears that the firm is capital deficient.
It also says that Pro-Financial is still conducting a reconciliation of nine series of principal protected notes (PPNs), which is expected to be complete by about May 31.
Earlier, the OSC said that became aware of a discrepancy in the number of outstanding PPNs reported in the records of the record-keeper for the notes, and in the records of the trustee. The commission says its investigation is ongoing.
Last week, Pro-Financial said that it is considering several proposals from Canadian asset managers; and, that it plans on teaming up with an established firm, envisions expanding its product lineup, and rationalizing costs.