The Canadian Investment Regulatory Organization (CIRO) has terminated the membership of Gravitas Securities Inc., effective Aug. 7, following a decision by a CIRO hearing panel following an application hearing.
Gravitas Securities Inc. is a Toronto-based private company that provides investment banking services – namely equity financing, hybrid securities, wealth management, and advisory services – to customers in Canada, according to its LinkedIn page and its company profile on Bloomberg.
A protective order dated June 8, 2023 initially suspended Gravitas Securities Inc.'s CIRO membership, said the CIRO’s news release. The company consented to the termination of its rights and privileges as a CIRO member, the news release added.
The CIRO then issued its Aug. 7 order under the Investment Dealer and Partially Consolidated Rules in response to the application brought by the CIRO’s enforcement staff.
Specifically, the application asked the CIRO hearing panel to expel Gravitas Securities Inc. from the CIRO and to terminate the rights and privileges of its membership under ss. 8212, 8409, and 8426 of the Investment Dealer and Partially Consolidated Rules.
The CIRO hearing panel considered the materials presented in support of this application. Ultimately, the hearing panel ordered the company’s expulsion from the CIRO and the termination of its membership rights and privileges, effective immediately, under s. 8212(4)(v) of the Investment Dealer and Partially Consolidated Rules
The role of the CIRO
The CIRO is a national self-regulatory body that oversees investment dealers, mutual fund dealers, and trading activities across the country’s debt and equity markets. The organization aims to protect investors, to ensure efficient and consistent regulation, and to build public trust in financial regulation and the management of their investments.
The CIRO investigates potential misconduct among its members and registrants. It has the authority to impose sanctions such as fines, suspensions, permanent bans, membership expulsions, and the termination of rights and privileges of both individuals and member firms.
The Investment Dealer and Partially Consolidated Rules, the Mutual Fund Dealer Rules, and the Universal Market Integrity Rules cover disciplinary proceedings conducted by the CIRO.
According to the CIRO’s news release, the free AdvisorReport service provides background information on the qualifications and any disciplinary history of advisors currently employed by CIRO-regulated investment firms.