IIROC expels Octagon Capital

Octagon Capital Corp., the defunct Toronto-based investment dealer, has been formally expelled from the Investment Industry Regulatory Organization of Canada (IIROC).

Following a video hearing to consider a motion from IIROC staff, a hearing panel of the self-regulatory organization issued an order terminating the firm’s membership.

The order was granted with the consent of Octagon, which was suspended on Dec. 3, 2015, after falling into capital deficiency and deciding to wind up the business rather than remedying the shortfall.

The firm entered bankruptcy the following day and Ernst & Young Inc. was appointed trustee.

According to the panel’s decision expelling the firm, Octagon complied with the terms of the 2015 suspension order, which required it to cease dealing with the public and to meet certain other requirements, including the preservation of its books and records.

Additionally, the panel heard that IIROC had not received any client complaints about the firm, which did not hold any client assets and was primarily an institutional broker with a small retail business (largely on behalf of friends and family).

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.