Sterling Bridge Mortgage Corp. – s. 31
IN THE MATTER OF STAFF'S RECOMMENDATION TO SUSPEND THE REGISTRATION OF STERLING BRIDGE MORTGAGE CORP.
OPPORTUNITY TO BE HEARD BY THE DIRECTOR UNDER SECTION 31 OF THE SECURITIES ACT
1. Sterling Bridge Mortgage Corp. (Sterling) is registered under the Ontario Securities Act (the Act) as an exempt market dealer.
2. Sterling's head office is in Calgary, Alberta and its principal regulator is the Alberta Securities Commission (the ASC).
3. On March 29, 2019, the ASC suspended the Sterling's registration as an exempt market dealer, investment fund manager and a restricted portfolio manager in Alberta (the Alberta Suspension). The suspension was imposed after Staff at the ASC conducted a focused compliance review. Sterling consented to the imposition of the suspension and waived its right to a hearing under section 76.1 of the Alberta Securities Act.
4. Pursuant to Multilateral Instrument 11-102 Passport System, the suspension automatically took effect in British Columbia, Manitoba, Saskatchewan and Quebec. However, the suspension did not automatically take effect in Ontario.
5. On April 8, 2019, on behalf of Staff of the Ontario Securities Commission (OSC Staff), Elizabeth King, Deputy Director, Registrant Conduct, notified Sterling in writing (the Notice) that OSC Staff had recommended to the Director that the registration of Sterling be suspended.
6. In response to the Notice, Sterling advised that it did not oppose the suspension.
7. Pursuant to section 28 of the Ontario Securities Act (Act), in considering whether to continue the registration, the Director is required to consider whether, among other things, whether a registration is otherwise objectionable.
8. I am of the view that it would be inconsistent with the OSC's mandate to provide investor protection and foster fair and efficient capital markets and confidence in the capital markets to permit a firm suspended by its principal regulator, the ASC, to remain registered in Ontario. Accordingly, it would be objectionable to have the registration of Sterling suspended in all other Canadian jurisdictions in which Sterling is registered, but not in Ontario.
9. My decision is that the registration of Sterling be suspended effective immediately.
April 24, 2019