BCSC settles with registered investment dealer for violating freeze order
Vancouver – Registered investment dealer Haywood Securities Inc. must pay $50,000 in a settlement with the B.C. Securities Commission (BCSC) for violating a freeze order.
Freeze orders, now called preservation orders, prevent a person from transferring assets, and increase the chances that there would be funds available to pay any financial sanctions imposed by a BCSC panel.
The BCSC issued a freeze order on accounts held at Haywood in 2019. The investment dealer was required to hold all funds, securities, exchange contracts and other relevant property on deposit, control or safekeeping in the accounts under the freeze order. The total value of the cash and securities contained in the frozen accounts was approximately $1.4 million.
Haywood violated the freeze order by inadvertently allowing an account holder to make six purchases in one of his frozen accounts and four transfers between different frozen accounts in 2019 and 2020. One of those trades led to a loss of $931,553.40.
When Haywood became aware it had breached the freeze order, the dealer cooperated in the BCSC’s investigation and voluntarily set aside its own funds to cover the losses from the frozen accounts.
Under the settlement agreement, Haywood has paid $50,000 to the BCSC.
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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