IIROC and Northern Securities Obtain Consent Order from Hearing
Panel on Expedited Hearing on Application Brought by IIROC Staff
TORONTO,
Dec. 14, 2012 /CNW/ - Northern
Financial Corporation (TSX-V: NFC) ("Northern Financial" or
the "Company") announced that IIROC and its wholly-owned
subsidiary, Northern Securities Inc. ("NSI") obtained an
order today, as agreed upon by IIROC and NSI, from a Hearing Panel
("Order") on the application brought by IIROC staff.
NSI has not been able to obtain an alternative
carrying broker or other alternative arrangement to replace Penson
Financial Services Canada ("Penson") which has announced its
decision to terminate its carrying broker business as of
December 31, 2012.
The Order provides that NSI must have a fully
signed agreement by December 31, 2012
with one or more Dealer Members to assign its client accounts, by
bulk transfer, that would result in the transfer of all of NSI's
client accounts from Penson by January 15,
2013. If NSI does not have a fully signed
agreement by December 31, 2012, NSI
agrees to immediately assign all of its client accounts to
Penson.
As of the close of business on December 31, 2012, as a condition of its
continuing approval and membership in IIROC, NSI must limit its
activities to mergers and acquisitions, corporate finance and
research, and cease any sales and advisory activity for retail or
institutional accounts. However, NSI may seek approval from
IIROC for any other registrable activities and is required to seek
approval for any change in business.
The Order also provides that NSI must provide
notice, in a manner and form satisfactory to IIROC Staff, of the
foregoing matters to its clients by December
17 and in particular to notify clients that: (1) as of
December 31, 2012 all client accounts
will be restricted to liquidating trades and transfer-outs as a
result of the termination of the Introducing Broker/Carrying Broker
Agreement between NSI and Penson; (2) clients have the right to
transfer their accounts to another Dealer-Member immediately to
avoid the application of the restrictions to their accounts; and
(3) clients must instruct their new Dealer Member to notify Penson
of any transfer as soon as possible and by no later December 31 to avoid the application of the
restrictions to their accounts.
About Northern Financial Corporation
Northern Financial Corporation wholly owns
Northern Securities Inc., a dealer member of IIROC that provides
investment banking services to small capitalization companies.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this news release.
This press release may contain forward-looking statements with
respect to the Company, its operations, strategy, financial
performance and condition. These statements generally can be
identified by use of forward looking words such as "may", "will",
"expect", "estimate", "anticipate", intends", "believe" or
"continue" or the negative thereof or similar variations. The
actual results and performance of the Company discussed herein
could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Important factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in the
Management's Discussion and Analysis and Filing Statement of the
Company which are available at www.sedar.com. The cautionary
statements qualify all forward-looking statements attributable to
the Company and persons acting on their behalf. Unless otherwise
stated, all forward-looking statements speak only as of the date of
this press release and the Company has no obligation to update such
statements.
SOURCE Northern Financial Corporation