The B.C. Securities Commission (BCSC) has permanently banned New Zealand-based Asia Finance Corp. Ltd. and ordered it to pay US$125,000 after the firm admitted that it traded securities for several British Columbia residents without being registered.
According to the settlement agreement between the firm and the regulator, Asia Finance promoted itself online as a private banking and wealth management provider. In August 2013, the firm opened trading accounts at a dealer in Vancouver to execute trades for clients; and between October 2013 and February 2014, the firm carried out approximately $8.25 million worth of trading for its clients through those accounts, primarily in U.S. over-the-counter bulletin board (OTCBB) securities.
However, Asia Finance was never registered in B.C. and, according to the settlement, “did not take reasonable precautions” to avoid selling securities to B.C. residents.
The settlement notes that Asia Finance shut down trading in the B.C. accounts shortly after learning of the BCSC’s investigation, and that it co-operated with BCSC staff throughout the investigation.