Decisions and Freeze and cease trade orders Securities
On July 19, 2013, the Bureau de décision et de révision (the "Bureau") handed down a decision imposing an administrative penalty of $15,000 on Universitas Foundation of Canada (the "Foundation").
The Foundation is a not-for-profit organization that promotes three education savings plans. These plans, set up as trusts, are reporting issuers subject to Québec securities regulation.
The Foundation carried out investments unauthorized by Regulation No. 15 respecting Conditions Precedent to Acceptance of Scholarship or Educational Plan Prospectuses and the exemption granted to it in 2001 permitting investments in companies' common shares. The Foundation also made investments that were inconsistent with the statements in its prospectus. Furthermore, it did not file for safekeeping with its depository the share certificate of Universitas Management Inc., the exclusive distributor of the three plans. In addition, the Foundation is the sole shareholder of Universitas Management Inc., which contravenes Regulation 41-101 respecting General Prospectus Requirements.
In its decision the Bureau states that although the Foundation did not commit fraud or deliberately attempt to contravene the law, its failings are as material as if it had intentionally acted to contravene its duties.
The Foundation has acknowledged the accusations made against it in this matter and considers that the amount of the administrative penalty is appropriate.