Regulator says it is not a regulated entity and investors should beware
A wealth management firm is falsely telling investors that it is regulated by the Canadian Investment Regulatory Organization’s predecessor.
CIRO says that documents issued by Wealth-Pal include claims of affiliations and regulatory endorsements that it does not possess, specifically that it is regulated by IIROC. The regulator says that the firm is not a member of either CIRO or IIROC and is not authorized to use logos of the organizations or to imply any form of regulatory endorsement.
In May, the Alberta Securities Commission issued a statement that: “Wealth-Pal is not registered to trade in or advise on securities or derivatives in Alberta. It is recommended that investors should not deal or engage with firms that are not registered as there is no assurance of any investor protections.
The website that the ASC says is associated with the firm does not give much away about its activities, offering only the option to “activate a promocode” but the firm is listed as a finance broker on Trustpilot, where it has 31 reviews that suggest it offers portfolio management and financial planning features.
CIRO says that investors should check the background, qualifications and any disciplinary history of investment advisors and firms registered with CIRO or the CSA by checking the free Advisor Report for advisors registered with investment dealers, or the CSA’s National Registrant Search.
The regulator recently highlighted its investor protection efforts in its 2023-2024 Enforcement Report.
