The Investment Industry Regulatory Organization of Canada (IIROC) will hold an expedited hearing in Montreal today to consider the suspension of back office firm Penson Financial Services Canada Inc.

IIROC said that an expedited hearing has been scheduled before a hearing panel where IIROC staff will be seeking orders for, among other things, the immediate suspension of Penson’s membership in the self-regulatory organization.

Separately, the Montreal Exchange said it has approved Penson’s resignation as an approved participant of the exchange.

Penson is in the process of winding up its business in Canada. And, in mid-January, IIROC reported that its U.S. parent company has filed for bankruptcy. IIROC noted that all of the assets held by Penson Canada for its clients were to be transferred to other IIROC dealers by the end of January.

Penson departure opens doors

The regulator said that the bankruptcy filing was not expected to have any negative impact on Penson Canada’s remaining clients or accounts, as it remains a separate legal entity with its own capital.