The British Columbia Securities Commission (BCSC) announced January 8 that it has reached a settlement agreement with Matthew Herbert Calvert, Ascenta Finance Corp. and Ascenta’s chief compliance officer, Tracy Anne Mabone.
The exempt market dealer and its employees failed to maintain records demonstrating the firm’s compliance with suitability requirements between July 2016 and August 2019, according to the BCSC’s announcement and settlement agreement with Mabone and Ascenta. Calvert, meanwhile, admitted that he recommended five unsuitable investments to three investors during the same period while working for Ascenta as an exempt market dealing representative.
Registered as such since 2012, Calvert’s registration has been subject to terms and conditions, including external compliance monitoring, since 2019. “The monitor has not reported any subsequent violations,” the announcement states. “Ascenta’s registration was also placed under independent compliance monitoring and strict supervision. Although the conditions have since lapsed, Ascenta has voluntarily continued to send supervision reports to the BCSC and paid an additional $18,500 in costs to the BCSC for its compliance review.”
Mabone and Ascenta meanwhile, failed to document how the firm conducted suitability analysis for 170 investments by 111 clients, according to Mabone and the firm’s settlement agreement. The BCSC says no investors affected by the misconduct lost money on their investments.
To settle with the commission, Calvert has paid $30,000. Together, Ascenta and Mabone have paid a combined $25,000.
