The Ontario Securities Commission (OSC) has suspended Toronto-based exempt market dealer Merit Valor Capital Asset Management Corp. for failing to file its required financials.
Following a hearing, the OSC found the firm is not suitable for registration, citing its failure to file audited financial statements and working capital reports.
According to the OSC’s decision, the firm, which became registered as an exempt market dealer in September 2015, “has been consistently late in complying with and is currently in breach of” filing requirements.
The regulator’s decision noted the firm argued that it was not actively engaged in dealing or underwriting exempt securities. The firm also said that, “due to its small size it was not able to get the appropriate response from its accountant or find a new accountant to complete the annual audited financial statements by the annual filing deadlines.”
However, the OSC said the regulator’s staff was “more than reasonable” in trying to work with the firm to remedy its filing failures.
Ultimately, it concluded that the firm is not currently suitable for registration and ordered it suspended, effective immediately.
“Registration is a privilege, not a right, and registrants of all sizes and stages of operations are able to meet their regulatory requirements in a timely manner,” the OSC said in its decision.
According to the regulator’s ruling, if the firm seeks re-registration, it must remedy its compliance issues, file its audited financials for 2018 and 2019, and it “should expect that terms and conditions to monitor the financial situation of the firm will be recommended.”