IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED
- and -
IN THE MATTER OF THE REGISTRATION OF
BONWICK CAPITAL PARTNERS, LLC
- Bonwick Capital Partners, LLC (Bonwick) has been registered as a dealer in the category of exempt market dealer since April 8, 2016.
- Bonwick’s head office is located in New York, NY and its principal regulator is the Autorité des Marchés Financiers (AMF) in Québec.
- Bonwick failed to comply with the requirements in s. 12.12 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) to deliver audited annual financial statements and a completed Form 31-103F1 Calculation of Excess Working Capital (collectively, the Financial Information) to the AMF. Pursuant to NI 31-103, the Financial Information was required to be delivered by March 31, 2017.
- Bonwick was formerly a member of the Financial Industry Regulatory Authority (FINRA) in the United States. On July 13, 2016, FINRA suspended Bonwick’s membership for failing to file its 2015 Audit Report in a timely manner. Although the suspension was lifted in October 2016, Bonwick’s membership was suspended again on December 12, 2016 for failure to pay outstanding fees.
- Bonwick’s membership was finally cancelled by FINRA on February 7, 2017 for failure to pay outstanding fees, and Bonwick was further sanctioned in June 2017 for having operated with a net capital deficiency and for violating net capital books and records requirements.
- In addition to failing to comply with its obligation to deliver the Financial Information to the AMF, Bonwick failed to pay its annual fees to the AMF for 2016.
- Ontario Securities Commission (OSC) staff assessed a $900 late fee on May 9, 2017 for filing its 2016 Form 13-502F4 Capital Markets Participation Fee Calculation after the prescribed deadline. This late fee remains unpaid.
- On November 6, 2017, OSC staff sent a letter (the Letter) to Devin Wicker, the ultimate designated person and chief compliance officer of Bonwick, informing him that OSC staff were recommending to the Director that Bonwick’s registration under the Securities Act (Ontario) (the Act) be suspended pursuant to section 28 of that statute on the grounds that OSC staff had concerns with Bonwick’s integrity, proficiency and solvency, that Bonwick had failed to comply with Ontario securities law, and that its ongoing registration would be objectionable. The Letter also informed Bonwick of its right to request an opportunity to be heard under section 31 of the Act if it wished to oppose Staff’s recommendation that its registration be suspended.
- On November 20, 2017, the AMF suspended Bonwick’s registration pursuant to subsection 10.1(2) of NI 31-103 for failing to pay its annual fees required under section 271.5 of the Québec Securities Regulation.
- Bonwick did not exercise its right to be heard, and did not otherwise respond to the Letter in any way.
- By failing to pay its late fees to the OSC, Bonwick has failed to comply with Ontario securities law. Moreover, because the AMF, Bonwick’s principal regulator, has suspended its registration for failing to pay its fees, Bonwick’s ongoing registration under the Act would be objectionable.
- For these reasons, my decision is to suspend Bonwick’s registration under the Act, effective immediately.
" November 27, 2017 "
" Debra Foubert "
Compliance and Registrant Regulation