BCSC panel finds that B.C. man and his companies facilitated trades in securities without being registered
Vancouver – A British Columbia Securities Commission (BCSC) panel has found that Chien-Hua Liu (a.k.a. William Liu) and two companies controlled by Liu (NuWealth Financial Group Inc. and CPFS Professional Financial Services Inc.) furthered trades in securities without being registered to do so under the Securities Act.
Liu and his companies made referrals of investors to an issuer and an exempt market dealer that ultimately led to 214 investments in securities totaling approximately $6.5 million. Liu and his companies received large commissions for the referrals which were tied to the purchase of specific securities.
The referrals involved people from B.C. and Hong Kong between 2013 and 2016. Liu and the companies steered customers to an exempt market dealer who offered the investors securities of one of its affiliates, and to an issuer involved in an early stage real estate development project in Fort McMurray.
The panel rejected Liu’s claim that he and his companies were exempt from registration requirements because they were “not in the business of trading.” The panel noted that Liu and his companies referred a significant number of investors, over a lengthy period of time and were compensated for the referrals by the dealer and issuer.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website, www.bcsc.bc.ca, by typing Chien-Hua Liu, NuWealth Financial Group Inc., CPFS Professsional Financial Services Inc., or 2018 BCSECCOM 372 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
A securities market that is fair and warrants public confidence
A dynamic and competitive securities industry that provides investment opportunities and access to capital
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