VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 14, 2017) - The British Columbia Securities Commission (BCSC) and the Mutual Fund Dealers Association of Canada (MFDA) have entered into settlement agreements with B.C. resident Winston King-Loong Kuit.
In his agreement with the BCSC, Kuit has admitted that he engaged in unregistered trading, unregistered advising, and distributing securities without a prospectus.
Between August 2010 and September 2014, Kuit acted as a finder for SBC Financial Group Inc. (SBC), a B.C. company that has never filed a prospectus in respect of the distribution of its securities. In his role as a finder, Kuit solicited investors, many of whom were his friends, family and clients, to invest in SBC. The investors that Kuit introduced to SBC collectively invested approximately $2.4 million. Approximately $1.8 million of those distributions did not qualify for any exemptions from the prospectus requirements of the Securities Act (the Act).
The agreement also states that although Kuit was registered under the Act for most of the relevant period, his registration category did not permit him to trade in SBC securities.
In his agreement with the MFDA, Kuit has admitted that between 2010 and August 2013 he solicited approximately $1.55 million in investments in SBC from 18 investors, most of whom were either clients or former clients, outside the facilities of his MFDA Member firms. He also admitted that he provided false or misleading information on a compliance questionnaire submitted to the Member in November 2012, which interfered with the Member's ability to supervise his conduct.
For his misconduct, Kuit has agreed to disgorge $147,500 to the BCSC, which represents the commissions he received from his misconduct. He has also agreed to pay $20,000 to the BCSC in respect of settlement of this matter.
The BCSC has also banned Kuit from trading or purchasing any securities (with limited exceptions), relying on any exemptions set out in the Act or the regulations, and becoming or acting as a director or officer of any issuer or registrant (with limited exceptions). He is also banned from becoming or acting as a registrant or promoter and acting in a management or consultative capacity in connection with any activities in the securities market and engaging in investor relations activities. Kuit's bans are to remain in effect for a period of 15 years.
Under the terms of the MFDA settlement, Kuit has been permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member.
Both settlement agreements acknowledge Kuit's cooperation with investigators from the respective organizations. The Executive Director of the BCSC also noted that Kuit sold his home to pay the proceeds towards the disgorgement order, which would return some money to SBC investors.
The BCSC acknowledges that settlement of this matter was a joint effort with the MFDA and thanks the MFDA for its cooperation.
You may view the BCSC's settlement agreement on our website, www.bcsc.bc.ca, by typing Winston King-Loong Kuit or 2017 BCSECCOM 43 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website. A copy of the MFDA Settlement Agreement is available on the MFDA website at www.mfda.ca.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the MFDA.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
About the Mutual Fund Dealers Association of Canada (www.mfda.ca)
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.
Learn how to protect yourself and become a more informed investor at www.investright.org