‘Unauthorized deposit-taking’: B.C regulator issues consumer alert about currency exchange

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, on Wednesday, Sept. 4, 2024. (Justin Tang / The Canadian Press)

A B.C. regulator is warning the public not to deposit any funds with a North Vancouver-based currency exchange company it is investigating for violations of the provincial Financial Institutions Act.

The B.C. Financial Services Authority issued a consumer alert about Fine Investment Inc., which does business as Nick Financial, on Friday.

The alert indicates the BCFSA is investigating the company for “unauthorized deposit-taking activity” in the province.

“BCFSA has determined that Nick Financial and its sole director, Ali Nikfarjam, conducted business as a currency exchange program that involved the solicitation and acceptance of consumer deposits that promised specific rates of return after a set period of time,” the alert reads.

“This activity contravenes the Financial Institutions Act, which prohibits carrying on deposit business without proper authorization."

The alert recommends that customers avoid depositing any funds with the company, monitor the BCFSA website for updates and contact the regulator with any concerns.

Those who currently have money deposited with Nick Financial should expect to be contacted directly by the company and receive a copy of an undertaking the company signed with the regulator.

In the undertaking, the company and Nikfarjam commit to “immediately cease” their deposit-taking activities, stop representing that Nick Financial is authorized to conduct deposit business in B.C., and return all customer funds received through the deposit program by Nov. 15, at the latest.

The BCFSA says those with current deposits should receive confirmation of repayment by Nov. 17.

In a news release, the regulator said its investigation “remains ongoing” and further action – including administrative penalties of up to $50,000 per contravention – may be taken.