April 24, 2020 CSA Investor warnings - News

Vancouver – The Canadian Securities Administrators (CSA) is warning the public about an entity falsely claiming to regulate derivatives in Canada.

The website of the so-called “Canadian Office of Derivative Trading” includes a number of fake claims, including that it regulates “the futures contract market in Vancouver” and that it oversees “all financial related activities of all business entities covered by this commission within British Columbia.”

There is no regulatory organization in Canada called the Canadian Office of Derivative Trading (CODT). In Canada, securities and derivatives trading is overseen by provincial and territorial securities regulators.

The CSA believes the website is being used by fraudsters to lend credibility to their investment scams. Prospective investors are referred to the website with promises that they can conduct checks on registration status and disciplinary history of the investment entities being promoted.

However, the search results are fake. When a prospective investor searches for the investment entity in question, the website indicates that the entity has no regulatory issues. That positive search result may encourage the investor to invest.

Investors should not use the CODT website to conduct due diligence checks and they should not rely on any of the information contained on the website.

The website makes a number of other false claims, including that the CODT:

• “regulates investment schemes”
• “supervises, and at all times regulates and inspects all financial-related institutions within its covered area of responsibility”
• “develops financial regulations that directly applies to the administration of the Canada’s banking institutions, trust companies, insurance companies and investment business”

In addition, although the website uses the British Columbia provincial crest, it is not affiliated with any government or securities regulator in Canada.

CSA members are investigating who is behind the website and actively working to have it taken down.

Investors seeking to check the registration or disciplinary status of any individual or firm should visit the CSA’s website This link will open in a new window.

The CSA also encourages anyone who is considering buying or selling an investment to do research and talk to their registered investment advisor to ensure it is an appropriate decision.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.

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