The Ontario Securities Commission (OSC) has granted an interim stay of penalties levied against Northern Securities Inc. and several of its executives by the Investment Industry Regulatory Organization of Canada (IIROC), pending the appeal of an IIROC disciplinary decision.
The OSC announced late Wednesday that it has issued an order staying the sanctions and penalties imposed by an IIROC hearing panel on Northern, the firm’s CEO, Vic Albioni, and a couple of other executives, until December 18.
A hearing is now scheduled on December 17, to set a date to hear the appeal; and, if necessary, to consider whether the interim stay should be extended.
Earlier this year, an IIROC hearing panel found that the firm and the executives contravened several IIROC rules, including risking its capital by improperly obtaining credit for a client; misstating capital; failing to correct deficiencies uncovered in compliance reviews; and supervisory failures.
Northern Securities chief suspended, fined by IIROC
Following a penalty hearing, IIROC levied fines and costs orders against the firm and the executives, imposed a two-year registration ban on Albioni, and permanently banned him from serving as an ultimate designated person (UDP) in the industry.
The firm immediately applied to the OSC for a stay of the sanctions, and said that both it, and the executives, have applied to the OSC for a review of the IIROC panel’s decision.
Northern Securities Inc. is owned by Toronto-based Northern Financial Corp. (TSXV:NFC).