New Brunswick Securities Commission

WFG Securities fined for unregistered office in Fredericton (10/06/24)

NB 1068

June 24, 2010

SAINT JOHN (CNB) - WFG Securities of Canada Inc. and a company employee have been reprimanded, and the company has been ordered to pay an administrative penalty of $20,000, for operating a branch office in Fredericton without proper registration and supervision.

On Monday, June 21, a New Brunswick Securities Commission (NBSC) panel approved a settlement agreement reached between NBSC staff and the parties.

NBSC staff discovered the deficiencies concerning the Fredericton branch while looking into an inquiry from a member of the public. Once the issues were brought to the attention of WFG Securities of Canada Inc., the company acted quickly to register the branch and put in place a suitable supervision arrangement.

"The proper registration of capital markets participants is the foundation for securities regulation and a key component in investor protection," said Rick Hancox, executive director, NBSC.

The mutual funds salespersons operating out of the Fredericton branch were registered with the NBSC, but they were incorrectly registered as working out of the Moncton office. There is no evidence or allegation that any investors were harmed as a result of the deficiencies identified in the settlement agreement, and WFG Securities of Canada Inc. co-operated fully with staff throughout the matter.

As an independent provincial Crown corporation, the NBSC oversees the capital markets in New Brunswick and regulates those that sell or manage securities. The NBSC is funded by regulatory fees paid by those operating in the investment industry, including public companies, mutual funds and more than 7,000 registered individuals and firms.

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10/06/24

MEDIA CONTACT: Michelle Robichaud, communications, New Brunswick Securities Commission, 506-643-7045.

10/06/24