The OSC claims that almost all of this cash was used to maintain Emerge’s financially distressed companies.
The regulator additional asserts Emerge breached obligations to traders by coming into prohibited loans, neglecting conflicts of curiosity created by these receivables, and failing to keep up correct data and efficient management methods.
The allegations lengthen to members of the unbiased committee overseeing the ETFs.
In accordance with the OSC, Marie Rounding, Monique Hutchins, and Bruce Friesen “breached [their] duties to traders, brought on the funds to enter into prohibited loans, didn’t correctly tackle the battle of curiosity created by the receivable, and failed to keep up correct books and data, or an satisfactory system of controls and supervision to make sure compliance with securities laws.”
Lawyer Jennie Baek of McMillan LLP, representing Rounding and Hutchins, described the OSC’s motion as “unprecedented.”
