Toronto-based investment dealer Octagon Capital Corp, has been placed into bankruptcy,and a regulatory hearing panel has suspendedthe firm.
The Ontario Superior Court ofJustice on Friday issued an order judging Octagon Capital to bebankrupt and appointing Ernst & Young Inc. as its trustee. As a result, E&Y has taken control of the firm’sproperty and operations and is working with the Canadian Investor Protection Fund (CIPF) tofacilitate the transfer ofits clients’ accounts to other investment dealers.
On Dec. 3, the Investment Industry Regulatory Organization of Canada (IIROC) held an expedited hearing into the status of Octagon, which decided to close its doors after it was discovered to besuffering a capital deficiency. The…