B.C. company pays $40,000 for unregistered trading

VANCOUVER, BC, April 19, 2023 /CNW/ - A B.C. company has agreed to pay $40,000 to the B.C. Securities Commission (BCSC) for trading in securities without being registered.

Under the settlement, Neighbourhood Holding Company Ltd. (NHCL) admitted that as a general partner to mortgage investment entity, it sold $29.9 million worth of the entity's securities to 30 purchasers from 2015 to 2019. It also communicated to potential purchasers the opportunity to invest in the entity and received compensation for its activities. But NHCL was not registered under the Securities Act to engage in these activities.

NHCL could have sought an exemption from registration for such activities, but it did not file the form to apply for the exemption. When NHCL was informed by the BCSC that it needed to register, it promptly filed for the exemption. Shortly thereafter, it registered through  an affiliate.

NHCL's communications about the investment opportunity were limited to the family that created NHCL; directors, officers and employees of NHCL and their families; a small number of close personal friends of NHCL's owners and senior management; and two registrants.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
  
  
• A dynamic and competitive securities industry that provides investment opportunities and access to capital.

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission