A Surrey-based portfolio and investment fund manager has been permanently shut down and three former executives fined $210,000 total by the 小蓝视频 Securities Commission (小蓝视频SC) after reaching a settlement agreement.
Chartwell Asset Management Inc. is now permanently prohibited from purchasing any securities and from becoming or acting as a registrant or promoter for failing to meet the standard of care for an investment manager when it invested $5 million in a company named Health Capital in 2011 to support an income fund.
“In the settlement agreement with the 小蓝视频SC, Chartwell admitted that it did not have sufficient information about Health Capital to support its calculation of the value of the fund, nor did it re-evaluate the fund’s valuation in light of multiple risk indicators,” the commission stated March 7.
The company, according to a hearing notice, did not re-evaluate risk to its income fund despite Health Capital’s missed or late payments, among other concerns.
“By doing so, Chartwell failed in its duty as an investment fund manager to exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances,” the commission added, via a media release.
The commission’s hearing notice and settlement agreement does not indicate there was any harm to investors.
Three former executives agreed to fines for violating the 小蓝视频 Securities Act.
Gregory Paul James Cameron, president and CEO since 2003, is ordered to pay $100,000; Wah Bo Chew, a past president and dealer up to 2017, is to pay $70,000; and Matthew Evans Cameron, the vice-president, advisor and chief compliance officer, is to pay $40,000.
The trio admitted that they authorized, permitted or acquiesced in Chartwell’s contraventions.
They also face sanctions:
- Gregory Cameron is prohibited for 15 years from becoming or acting as a director or officer of any reporting issuer or registrant and from becoming or acting as a registrant or promoter.
- Chew is prohibited for 10 years from becoming or acting as a director or officer of any reporting issuer or registrant.
- Matthew Cameron is prohibited for four years from becoming or acting as a chief compliance officer.
That the individuals came to a settlement before heading to a hearing is said to be a mitigating factor.
