The Ontario Securities Commission on Friday issued a temporary order imposing further terms and conditions on the registration of Portus Alternative Asset Management Inc.

The additional terms preclude Portus from paying out, redeeming or otherwise returning investment funds to clients, except with respect to pre-authorized periodic withdrawals on behalf of clients.

As well, the temporary order precludes Portus from trading in securities, except with respect to pre-authorized periodic withdrawals on behalf of clients.

The order also places terms and conditions on the registration of Portus managing director Boaz Manor which prevent him from trading or conducting an act in furtherance of a trade in respect of the term notes invested in on behalf of Portus’s clients.

As a result of the temporary order, the OSC says the notes are protected. At maturity the notes will have a value of at least the principal invested by the clients.

The regulator says the temporary order also precludes immediate withdrawals which could result in the preferential treatment of some clients to the detriment of others.

The hearing to consider whether the temporary order should be extended is scheduled for February 17 in Toronto