Toronto-based Jacob Securities Inc. has been suspended by the Investment Industry Regulatory Organization of Canada (IIROC) after an expedited hearing, the self-regulatory organization announced on Friday.
IIROC has not yet published its reasons for the suspension, which follows a hearing carried out on Dec. 17. An IIROC hearing panel has ordered that the boutique investment firm’s membership in the industry self-regulatory organization be suspended, and that Jacob Securities cease dealing with the public, among other restrictions.
The regulator advises clients of Jacob Securities that are looking to make a liquidating trade, or to transfer their account, to contact its carrying broker, National Bank Correspondent Network, directly.
Jacob Securities says that it plans to divest its retail and trading businesses to focus on investment banking. As of Jan. 4, 2016, it will become Jacob Capital Management Inc., which will be a non-IIROC regulated investment banking business specializing in small and mid-caps.
“By transitioning to focus on our core strengths, the firm will return to its roots and expertise that built it a sterling global reputation in the first place,” says Sasha Jacob, the firm’s president and CEO, in a statement. “The business has changed over the years. To continue to lead, we need to be lean, sharp, nimble and focused on our global leadership in key sectors. We believe it is a wise move to shed our non-core businesses in Canada to focus on what we do best — provide premier banking advisory in key sectors of the economy.”
IIROC recently suspended Toronto-based Octagon Capital Corp.