Northern Financial reports on Application by IIROC staff for
Expedited Hearing to require notice to clients of Northern
Securities pending restrictions resulting from termination of the
carrying broker agreement with Penson Financial
TORONTO,
Dec. 11, 2012 /CNW/ - Northern
Financial Corporation (TSX-V: NFC) ("Northern Financial" or
the "Company") announced that its wholly-owned subsidiary,
Northern Securities Inc. ("NSI") has been notified of an
application ("Application") to be made by IIROC Staff to a Hearing
Panel in an Expedited Hearing to be held on December 12, 2012.
Further to its press releases dated November 14 and November
26, NSI continues to seek alternative arrangements in order
to replace Penson Financial Services Canada ("Penson") as NSI's
carrying broker. NSI has been in active discussions with a number
of other carrying brokers and self-clearing firms that could
provide NSI with clearing, settlement, and custodian
services. Penson has publicly stated that it proposes to
terminate its main business operations as of December 31, 2012.
The Application requests that, as a condition of
NSI's continued membership, NSI provide written notice to its
clients by December 17 that as of
December 31, 2012 (unless extended by
Penson Financial) NSI's client accounts will be restricted to sales
or transfer-outs, that clients have the right to transfer their
accounts to another dealer-member, and that clients notify Penson
of any transfer no later December 31
to avoid the application of these restrictions.
NSI confirmed to its counsel that it is in fact
sending out such a letter to clients and its counsel informed IIROC
of the proposed mailing. On December 10, NSI authorized the mailing of the
client letter to its clients through Penson Financial, its carrying
broker. In addition, although not required by IIROC,
NSI has posted the letter on its website.
The Application also requests that, if NSI has
not secured a new carrying broker arrangement or other proposed
arrangement, NSI be suspended. NSI continues to act
cooperatively with Penson to secure an alternative arrangement that
is satisfactory to Penson and IIROC. If an
alternative arrangement is secured, NSI will seek an extension of
the December 31 termination date in
order for the alternative arrangement to be implemented.
About Northern Financial Corporation
Northern Financial Corporation wholly owns
Northern Securities Inc., a full service investment dealer that
provides financial advisory services to retail and institutional
clients and investment banking services to small capitalization
companies.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this news release.
This press release may contain forward-looking statements with
respect to the Company, its operations, strategy, financial
performance and condition. These statements generally can be
identified by use of forward looking words such as "may", "will",
"expect", "estimate", "anticipate", intends", "believe" or
"continue" or the negative thereof or similar variations. The
actual results and performance of the Company discussed herein
could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Important factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in the
Management's Discussion and Analysis and Filing Statement of the
Company which are available at www.sedar.com. The cautionary
statements qualify all forward-looking statements attributable to
the Company and persons acting on their behalf. Unless otherwise
stated, all forward-looking statements speak only as of the date of
this press release and the Company has no obligation to update such
statements.
SOURCE Northern Financial Corporation