News Release
Exempt market dealer agrees to settlement
Jan 09, 2020
CALGARY – The Alberta Securities Commission (ASC) has concluded a Compliance Settlement Agreement with Northern Alliance Financial Corporation (Northern Alliance).
Northern Alliance, a British Columbia-based issuer and exempt market dealer, admitted to a breach under Alberta securities laws that was discovered in the course of a compliance review by ASC staff. By failing to comply with the limits prescribed in section 2.9(2.1)(b)(iii) of National Instrument 45-106 Prospectus and Registration Exemptions when it sold securities to an eligible investor, Northern Alliance engaged in an illegal distribution.
Northern Alliance cooperated with the ASC and under the Settlement Agreement paid $5,000 to the ASC.
“In order to rely on an exemption to the prospectus requirement, issuers must ensure that all criteria for the exemption are met,” said Tom Graham, Director, Corporate Finance. “In the course of the ASC’s ongoing compliance reviews, it was determined that the investment limits set out under the offering memorandum exemption, which is an important investor protection, were not observed by the issuer.”
A copy of the Settlement Agreement and related information, including National Instrument 45-106 and information on common capital raising exemptions, can be found on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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Hilary McMeekin
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ASC Public Inquiries
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inquiries@asc.ca