An overseas firm has agreed to pay back thousands of dollars to Saskatchewan investors who used its online trading platform, Financial and Consumer Affairs Authority of Saskatchewan (FCAA) said Tuesday.
Ava Trade Ltd. admitted to violating security laws when it allowed users to open accounts to speculate in various securities and derivatives, the FCAA said.
Harvey White, the deputy director of enforcement with the FCAA, said it is not usual for overseas firms to co-operate with an investigation.
“Usually, investors will have a very difficult time retrieving any money sent overseas,” White said in a statement.
“It is for this reason, we caution investors, whenever they are dealing with someone who is selling securities, to check if they are registered in Saskatchewan.”
Ava Trade has agreed to pay back just over $143,000 to 40 Saskatchewan investors and pay a $7,500 administrative penalty.
No dishonesty is alleged under the settlement reached between the FCAA and Ava Trade, but the company admitted to breaching registration requirements.
Ava Trade has since transferred all its Canadian clients to a firm registered with securities regulatory authorities across the country, the FCAA said.