Skip Navigation

News Release

Ontario firm pays $60,000 for compliance deficiencies

  • Date:

    2024-12-02
  • Number:

    2024/109

Vancouver – A Toronto-based investment advisory firm, formerly based in Vancouver, has paid $60,000 to the BC Securities Commission (BCSC) after a compliance exam revealed repeat deficiencies.

WealthBar Financial Services Inc., doing business as CI Direct Investing and registered in B.C. as a portfolio manager, was the subject of a compliance exam in 2022. The exam evaluated the firm’s compliance with new rules introduced in 2021 that enhanced aspects of the client-registrant relationship, including managing conflicts of interest, obtaining information about a client’s financial situation and risk tolerance, and ensuring that investments are suitable for each client.

The exam revealed several deficiencies in WealthBar’s compliance system, including the firm’s failure to identify all existing material conflicts of interest and to address those unidentified conflicts in the best interest of the clients. WealthBar also failed to adequately meet its “Know Your Client” obligations and did not ensure that the firm’s advisers always had meaningful conversations with clients as required.

WealthBar also failed to put the interests of some clients first. Certain clients who were referred by third parties were put only into portfolios that benefited the third parties, without considering other options. By doing so, WealthBar failed to meet its suitability obligations.

Following the 2022 exam, the BCSC imposed 11 terms and conditions on WealthBar, including the hiring of an independent compliance monitor at the firm’s own cost. The terms and conditions were subsequently removed in October 2024. WealthBar has not been the subject of any investor complaints and has cooperated with the BCSC throughout the investigation and enforcement process leading to this settlement.

WealthBar must pay the BCSC $60,000 under the terms of the settlement and also previously paid the BCSC $14,800 for the cost of the 2022 compliance exam.

About the BC Securities Commission (bcsc.bc.ca)

The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.  

Media Contact:
Elise Palmer
604-899-6830

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org