OSC staff allege Caldwell Investment broke rules, misled investigators
At the Ontario Securities Commission in Toronto on March 21, 2005. (Adrian Wyld / CANADIAN PRESS)
TORONTO -- The enforcement branch of the Ontario Securities Commission is accusing Caldwell Investment Management of executing most of its clients' trades through an affiliated company rather than making reasonable efforts to find the best alternative.
The OSC enforcement staff also allege the Toronto-based firm provided misleading statements to investigators looking into the matter and to an independent review committee established to oversee Caldwell's activities.
The statement of allegations says the activities occurred between January 2013 and November 2016.
At that time, Caldwell managed nine investment funds and about 300 separately managed discretionary client accounts.
Total assets under management by Caldwell Investment Management ranged from $250 million to $400 million over the relevant period.
A company statement says it "has been in discussions with OSC Staff for some time and has been working to resolve the issues. Caldwell Investment Management Ltd. will have no further comment for the time being."
OSC enforcement staff allege that Caldwell Investment Management failed to have a process in place to evaluate trades or collect information to determine if it was fulfilling its obligation to provide clients with the best alternative.
The staff also allege the company didn't have a consistent explanation of its process and provided conflicting information.