Northern Securities enters into agreements to assign client
accounts to two brokerage firms by bulk transfer and anticipates
remaining client accounts to be assigned to up to three additional
brokerage firms
TORONTO,
Dec. 24, 2012 /CNW/ - Northern
Financial Corporation (TSX-V: NFC) ("Northern Financial" or
the "Company") announced that its wholly-owned subsidiary,
Northern Securities Inc. ("NSI") has entered into agreements
to assign certain client accounts to two brokerage firms by bulk
transfer. The first brokerage firm has agreed to employ
the 16 investment advisors who are responsible for the client
accounts that are to be transferred to the first
firm. The 16 investment advisors are eight investment
advisors in Calgary, four
investment advisors in Vancouver,
two investment advisors in Brandon
and one investment advisor in each of Nanaimo, British Columbia and Toronto.
A second brokerage firm has agreed to employ the
three investment advisors in Toronto who are responsible for the client
accounts being transferred to the second firm.
In addition to the above client account
transfers, NSI anticipates that eight investment advisors will be
transferred to up to three additional brokerage firms, along with
their client accounts. NSI anticipates that it will
enter into agreements with the additional brokerage firms for such
firms to accept the client accounts of the eight investment
advisors.
All of the client account transfers are being
done pursuant to a consent order, agreed upon by IIROC and NSI,
issued by an IIROC Hearing Panel ("Order") on December 14, 2012. The Order was issued as
a result of NSI being unable to obtain an alternative carrying
broker or other alternative arrangement to replace Penson Financial
Services Canada Inc. ("Penson"), which is discontinuing its
carrying broker business as of December 31,
2012.
As of the close of business on December 31, 2012, NSI will 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.
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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this 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