The former head of investment fund firm frontierAlt Capital Corp. has agreed to a two-year trading ban, and $40,000 in financial penalties, to settle allegations of various supervisory failures.
The Ontario Securities Commission announced Wednesday that it has approved a settlement agreement with Asif Khan, former chairman and CEO of frontierAlt, resolving allegations of a variety of supervisory failures.
“During the relevant period, the activities of the FALT investment fund managers as directed by Khan and the activity of the [limited market dealer] as directed by Khan were characterized by a failure to comply with Ontario securities law and conduct contrary to the public interest,” the settlement says.
According to the settlement, between 2007 and 2010, Khan failed to ensure that the firm was keeping adequate books and records, failed to exercise proper care in managing the FALT investment funds, allowed the designated compliance officer at a limited market dealer owned by the firm, MAK Allen & Day Partners Inc., to receive direct compensation from third parties; failed to keep adequate books and records at MAK; and, failed to provide adequate compliance oversight and supervision over the activities of MAK.
Under the settlement, the commission ordered that he be prohibited from being registered, that he cease trading (except for his own account), and that exemptions don’t apply to him for two years; he is also reprimanded; banned from serving as a director or officer of an investment fund manager for four years; prohibited from becoming an investment fund manager for four years, or a promoter for two years; and, must pay an administrative penalty of $25,000 and costs of $15,000.