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News Release

BCSC settles illegal distribution case involving nominee director

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Vancouver – The British Columbia Securities Commission (BCSC) has reached a settlement agreement with a B.C. man who was the nominee director of a company that illegally sold its shares. 

Chun Ying (also known as Jim) Pan was a nominee director of FS Financial Services (Alberta) Inc., a company that raised $12.8 million between 2015 and 2017.

All of the shares were sold without a prospectus, a formal document that explains the details of an investment and the risks involved. None of the sales qualified for an exemption from the prospectus requirements under the Securities Act.

Pan admitted that he participated in FS Alberta’s fundraising, signing cheques and signing loan agreements between the company and investors. He also recruited the first employee who later became the other nominee director of the company.

As part of the settlement, Pan has agreed to pay $40,000 to the BCSC. 

He is also prohibited for five years from: 

• trading in or purchasing securities or exchange contracts (with some limited exceptions)
• relying on any exemption under the Securities Act
• being a director or officer of any issuer or registrant
• being or acting as a registrant or promoter
• acting in a management or consultative capacity in connection with the securities market
• and engaging in investor relations activities

About the British Columbia Securities Commission (

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

Media Contact:
Elise Palmer

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)

Learn how to protect yourself and become a more informed investor at

An earlier version of this release indicated that Mr. Pan had to take a course, which was not part of the settlement.