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Abbotsford financial broker pushing dubious investment handed 5-year ban, $15000 penalty – Mission City Record

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A former Abbotsford mutual fund dealer who was pushing a dubious bond investment has been handed a $15,000 penalty and five-year ban from securities-related business by regulators.

Matthew Elliott de Haan’s employment at Sun Life Financial Investment Services ended on Dec. 12, 2018, after they became aware he was soliciting investments into a bond off their books and launched an investigation.

A hearing was conducted by the Mutual Fund Dealers Association of Canada (MFDAC) on Aug. 10, 2021, with the decision published on Sept. 27.

“The purported bond offering can only be characterized as dangerously implausible. It follows that the Respondent’s promotion of the offering exposed prospective investors to a truly severe risk of harm,” said regulators.

“This was more than an example of extraordinarily poor judgment.”

Elliott de Haan had entered into a sales agreement with Impact International Secured Investments Corporation, a B.C. corporation, in October, 2018, agreeing to solicit investors for a 10 per cent commission.

This was done without the knowledge or consent of Sun Life, violating MFDAC’s regulations.

Throughout November, he unsuccessfully tried to get at least seven people to invest, including a client of Sun Life.

Impact provided him with promotional material, which claimed to be structuring a bond to fund a U.S. wind-farm project. To participate, a minimum investment of $500,000 was required.

Impact projected a return of 7468 per cent over seven years, including a $1 million return within a month, an average of $2 million per year in royalties, and $7.5 million per year for three years from royalties from another source.

Impact’s promotional material “should have provoked immediate alarm,” regulators said, because the returns defied “every normal expectation of investment economics.” Even the investment-return calculations on the promotional material were mathematically incorrect.

“Such carelessness in a financial offering is a very bad sign, and it is all the more so when the projected returns are beyond incredible.”

Elliott de Haan’s penalty was mitigated by his full admission of liability and misconduct, and his “constructive attitude” towards the discipline process, which he did without a lawyer.

He testified that he entered into the sales agreement with Impact because he was not earning enough income and was financially desperate.

RELATED: B.C. securities panel orders companies, founders to pay $37 million in fines


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patrick.penner@missioncityrecord.com

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Boris Johnson Says UK Doesn't Want to Turn Away Chinese Investment – BNN

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(Bloomberg) — Prime Minister Boris Johnson said he is not about to “pitchfork away” offers of Chinese investment despite the concerns of some of his own lawmakers. 

Decisions to bar Chinese companies from Britain’s fifth-generation communication networks and nuclear power, and condemnation of China’s human-rights record have soured relations with Beijing over the last few years, but Johnson maintains he is pro-China. 

“I am no Sinophobe — very far from it,” Johnson said in an interview with Bloomberg Editor-in-Chief John Micklethwait on Monday. “I’m not going to tell you that the U.K. government is going to pitchfork away every overture from China.”

Read More: Johnson Hosts Business Leaders’ Dinner Amid U.K. Investment Push

Johnson was speaking ahead of an investment conference in London on Tuesday designed to boost investment into the U.K. and just a fortnight before he hosts the Cop-26 climate summit in Scotland. With Chinese President Xi Jinping likely to be absent from the summit, concerns are growing China may refuse to set new climate change goals and deprive Johnson of a clear win on tackling global warming.

U.K. imports from China amounted to 67.6 billion pounds ($92.8 billion) in the year through June, according to U.K. statistics, a rise of nearly 40% from the previous year. That makes China the U.K.’s third largest trading partner.

“China is a gigantic part of our economic life and will be for a long time — for our lifetimes,” Johnson said. “But that does not mean that we should be naive in the way that we look at our critical national infrastructure.”

The government has said that Chinese firms are welcome to invest in non-strategic parts of the economy but Johnson refused to spell out exactly where he would draw the line. “You’d have to look at what you’re defining as strategic,” he said. 

As part of the investment conference, Huaneng will invest in a 50-megawatt battery project. 

The U.K. has already introduced legislation making it harder for foreign investors to take significant stakes in critical national infrastructure. 

Read More: China Blasts ‘Despicable’ U.K. Move to Ban Envoy From Parliament

Last month, China’s ambassador to London, Zheng Zeguang, was prevented from participating in a meeting in the U.K. Parliament in a case that crystallized the conflicting attitudes among Tory MPs. 

Zheng had been asked to attend by Conservative member Richard Graham, who chairs a group of lawmakers seeking to foster good relations with China. But the invitation drew outrage from others who have been sanctioned by Beijing for speaking out over alleged human rights abuses and the invitation was canceled by Parliamentary Speaker Lindsay Hoyle. 

Beijing has repeatedly denied any mistreatment of its Muslim Uyghur minority and insists crackdowns in Hong Kong are to prevent insurrection. 

Johnson insisted that the relationship can prosper “in spite of all the difficult conversations about the Dalai Lama or Hong Kong or the Uyghurs.”

“Actually trade with China has continued to expand for a very long time and I think probably will continue to expand for the rest of our lives,” he said. 

©2021 Bloomberg L.P.

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Morrisons investors set to rubber stamp $10 billion CD&R takeover

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Shareholders in supermarket group Morrisons are expected on Tuesday to approve a 7 billion pound ($9.6 billion) offer by U.S. private equity firm Clayton, Dubilier & Rice (CD&R), bringing the curtain down on Britain’s most fiercely contested takeover this year.

CD&R, which has former Tesco boss Terry Leahy as a senior adviser, won an auction for Morrisons on Oct. 2, bidding a penny a share more than a consortium led by Softbank owned Fortress Investment Group.

Investor approval for the deal will conclude a six-month battle to buy Morrisons, Britain’s fourth-biggest grocer and one of the country’s biggest food producers.

It will end Morrisons’ 54-year run as a publicly listed company and see the ultimate decisions on the group’s future shift from its Bradford, northern England, base to the New York home of CD&R.

Morrisons, which started out as an egg and butter merchant in 1899, trails market leader Tesco, Sainsbury’s and Asda in annual revenue.

The battle for Morrisons has been the most high-profile amid a raft of bids for British companies this year, reflecting private equity’s appetite for cash-generating UK assets.

With the winning bid representing a hefty 61% premium on Morrisons’ share price before takeover interest publicly emerged in mid-June, analysts expect little or no dissent.

To go through CD&R’s offer needs the support of shareholders representing at least 75% in value of voting investors at the meeting, which is being held both physically and virtually.

CD&R has committed to retaining Morrisons’ Bradford headquarters and its existing management team, led by CEO David Potts.

It has also said it will execute the supermarket chain’s existing strategy, not sell its freehold store estate and maintain staff pay rates.

These commitments are not legally binding, however.

If, as expected, shareholders approve the offer, CD&R could complete its takeover by the end of the month, making Morrisons the second UK supermarket chain in a year to be acquired by private equity after a buyout of No. 3 player Asda, by the Issa brothers and TDR Capital, completed in February.

($1 = 0.7284 pounds)

 

(Reporting by James Davey; Editing by Susan Fenton)

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New York directs two cryptocurrency lending platforms to cease activity

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Two cryptocurrency lending platforms were asked to cease activities in New York by the state’s attorney general on Monday and three other platforms were directed to provide information about their business.

The move comes weeks after New York Attorney General Letitia James won a court order forcing the closure of cryptocurrency exchange Coinseed.

In a redacted version of a letter dated Monday, James said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities”.

Regulators in the U.S. have been ratcheting up scrutiny of a world that has so far existed in a regulatory gray area, against the backdrop of rising tension between the crypto industry and regulators worldwide.

James filed a lawsuit in February to shut down Coinseed for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens.

The state’s attorney general warned investors about “extreme risk” when investing in cryptocurrency and issued warnings to those facilitating in the trading of virtual currencies.

“Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately,” James said on Monday.

 

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shounak Dasgupta)

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