The Investment Industry Regulatory Organization of Canada is taking emergency measures to shut down First Leaside Securities Inc.

IIROC staff will call for the suspension of the firm at an Expedited Hearing scheduled for February 24, at which time the regulator will lay out its case.

Read the Notice of Application.

First Leaside Securities is part of First Leaside Group of Companies, a real estate and wealth management company based in Uxbridge, Ontario.

The parent company was warned by the OSC in November 2011 that it was “not appropriate to be using money raised from new investors to fund operating losses, rehabilitation costs and distributions to existing limited partnerships.”

On February 8, 2012, the company sent out a letter to investors, stating:

“At this time, First Leaside faces dwindling cash reserves, mounting obligations and a very short timeframe for devising and implementing a solution.”

“Regrettably, after considering the alternatives available for First Leaside’s business and having received advice from its external financial and legal advisors, the Independent Committee has determined that the best route forward for First Leaside and its investors is to implement a managed wind-up of First Leaside’s business and assets.”