A company that offered investors the ability to make fractional real estate investments violated securities law by trading without registration, according to a settlement agreement with the British Columbia Securities Commission (BCSC).
In a settlement with regulators dated Monday, Addy Technology Corp. agreed to pay the BCSC $100,000 to resolve allegations that it breached registration requirements.
According to the settlement, between 2018 and 2025, the company traded $26 million worth of securities by offering investors shares or limited partnership units in various issuers that represented fractional ownership in real estate properties.
The company charged membership fees to exempt market dealers (EMDs) to use its platform and charged investors a fee for “early access” to certain properties and features of its platform.
The firm’s business triggered the requirement to register, the settlement said, by soliciting investors through its online platform, email and social media; intermediating trades in issuers’ securities; and charging fees for the use of its platform.
The firm wasn’t eligible to rely on certain registration exemptions, such as the crowdfunding exemption, it noted, given its connection to certain issuers.
As a result, the company breached registration requirements, the regulator alleged.
The firm, which has since applied for dealer registration, cooperated with regulators and admitted to misconduct, the settlement noted.
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