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by Mike Caswell

The B.C. Securities Commission has imposed a $300,000 fine on now-defunct Vancouver firm Vertex One Asset Management Inc. and four-year bans on two former officers. The BCSC claims that the firm failed to properly supervise employees and to ensure that they had the appropriate registration. It also paid incentives to mutual fund salesmen that the BCSC describes as "improper."

The fine and bans are contained in a settlement agreement that the BCSC released on Friday, Aug. 25. The sanctions apply to Vertex One and its former chief compliance officer, Martin Lang, as well as the firm's former ultimate designated person, Jeffrey McCord. The settlement agreement bars Mr. Lang and Mr. McCord from working as a chief compliance officer or an ultimate designated person for four years. Upon their return to the industry, they must be under strict supervision for three years.

The penalties follow the demise of Vertex One, which held itself out as a "Canadian-run, employee-owned firm, delivering over 20 years of quality alternative investment solutions for retail and institutional investors." It ceased operations in July, 2021, after slowly selling parts of its business. At the time, there were no allegations of any wrongdoing at the firm.

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