On April 18, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and Jory Capital.
IIROC requires all dealer members to always maintain a level of risk-adjusted capital above zero, and it says Jory admitted it had failed to meet this requirement since October 29, 2012.
Specifically, the firm admitted to the following violation:
Since that time, it has failed to have and maintain at all times risk-adjusted capital greater than zero, contrary to IIROC Dealer Member Rule 17.1.
Pursuant to the agreement, Jory agreed to IIROC’s ruling that its membership is terminated, pursuant to IIROC Dealer Member Rules 20.34(e) and 20.34(g).
In December 2012, Jory ceased active business operations and all of its client accounts were transferred to the Winnipeg business location of MGI Securities.
Read: Jory Capital exits brokerage business, for more on how its CEO is transforming the company
Read the settlement agreement.