July 19, 2017 3:12 pm
Updated: July 19, 2017 8:34 pm

Securities regulator warns of unauthorized stock exchange operating out of B.C.

The BCSC says VSEC's website lists a number of companies it claims has used the exchange to raise capital.

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The agency charged with regulating B.C.’s financial markets has issued a warning about a company falsely claiming to be a licensed Vancouver stock exchange.

The BC Securities Commission (BCSC) said a company called Vancouver Stock Exchange Corp. (VSEC) appears to have been issuing exchange listings to companies in both China and B.C.

The company claims to operate from Kitimat with an ‘enquiry centre’ in Shenzhen, China.

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The regulator said the VSEC is claiming to be the old Vancouver Stock Exchange (VSE), and lists about 80 companies on its website that it claims to have approved for listing.

The VSE merged with another stock exchange in 1999 and no longer exists.

But the BCSC said the company is falsely claiming the VSE was reinstated last year as an independent stock exchange.

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BCSC Director of Enforcement Doug Muir says an unauthorized stock exchange could ruin the reputation of our markets.

“There’s a lot of requirements and rules that stock exchanges have to protect our markets and to protect investors. And if this company is not following those then there is the risk that some harm could happen.”

The BCSC said VSEC does not have authorization to operate as an exchange in B.C., as it has not received recognition or an exemption from the BCSC.

The BCSC is asking anyone with information on the company to contact it by phone at 1-800-373-6393 or by email at inquiries@bcsc.bc.ca.

© 2017 Global News, a division of Corus Entertainment Inc.

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