In the Matter of the Securities Act
R.S.O. 1990, c. S.5, as amended
In the Matter of the Registration of
PACE Securities Corp.
Decision of the Director
- PACE Securities Corp. (PSC) was registered under the Ontario Securities Act (the Act) as an investment dealer effective June 28, 2013 and as an investment fund manager effective September 27, 2016.
- On May 21, 2020, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) suspended the membership of PSC. IIROC staff sought the suspension of PSC’s IIROC membership as a result of an order granted on May 14, 2020 by the Ontario Superior Court of Justice authorizing the wind-up of PSC and appointing Ernst & Young Inc. to oversee the liquidation of PSC.
- Pursuant to subsection 29(1)(2) of the Act, the registration of PSC in the category of investment dealer was automatically suspended upon the suspension of PSC’s membership with IIROC. However, subsection 29(1)(2) does not automatically suspend PSC’s registration as an investment fund manager.
- On May 27, 2020, on behalf of Staff of the Ontario Securities Commission (OSC Staff), Michael Denyszyn, Manager, Registrant Conduct, notified Ernst & Young Inc. and the registered ultimate designated person of PSC in writing that OSC Staff had recommended to the Director that the registration of PSC be suspended.
- Staff did not receive notice from anyone acting on behalf of PSC objecting to Staff’s recommendation or requesting an opportunity to be heard.
- Pursuant to section 28 of the Act, in considering whether to continue the registration, the Director is required to consider whether, among other things, a registration is otherwise objectionable.
- I am of the view that it would be inconsistent with the OSC’s mandate to provide investor protection, and to foster fair and efficient capital markets and confidence in the capital markets, to permit PSC to continue to be registered as an investment fund manager when PSC’s registration as an investment dealer has been suspended and in light of the court ordered wind-up of PSC. Accordingly, it would be objectionable for PSC to continue to be registered as an investment fund manager in these circumstances.
- My decision is that the registration of PSC be suspended effective June 5, 2020.
Registration Manager, Compliance and Registrant Regulation Branch
June 5, 2020