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The Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a hearing to consider suspending PACE Securities Corp.

IIROC announced that it will hold a hearing via teleconference on May 21 to seek an order suspending PACE’s membership in the industry self-regulatory organization in the wake of its court-ordered windup.

According to a letter from the firm’s parent company, Vaughan, Ont.-based PACE Savings & Credit Union Ltd., to its members, the decision to wind up the firm comes after PACE Securities was unable to secure capital.

The credit union itself was placed under regulators’ control in 2018 after financial irregularities were uncovered. Under its new directors, who were installed in January, the credit union, which is the securities firm’s sole shareholder, has now decided to dissolve the firm.

On May 14, at the request of PACE Securities, the Ontario Superior Court of Justice issued an order authorizing the windup of the firm and its subsidiaries, Pace Financial Ltd., Pace Insurance Brokers Ltd. and Pace General Partner Ltd.

The court also appointed Ernst & Young Inc. (EY) to oversee the liquidation of the companies.

Among other things, the court will be seeking to transfer clients’ accounts to new dealers.