Law

Financial Loss Claims Report

In some situations, an investor loses money because of the illegal or improper conduct of a market participant. If the losses resulted from illegal or improper behavior, an investor can make a claim to recover financial losses up to $250,000.

The Manitoba Securities Commission reviews all complaints and claims and if warranted, conducts an investigation and a hearing to determine whether that person or company should be allowed to continue to sell stocks, bonds, mutual funds or other forms of securities in Manitoba.

A claim can be made in the event that you have suffered a financial loss of up to $250,000 as a result of one of the following circumstances:

► A violation of The Securities Act
► The illegal or improper conduct of a person or company selling securities

The Manitoba Securities Commission takes personal claims very seriously and if it is determined that a claim for Compensation for Financial Loss can be put forward, the following steps will be taken:

1. Commission hearing to determine if misconduct occurred and to request a compensation order if warranted
2. Commission staff will present the claim on behalf of the investor. There is no cost to the investor to file a claim
3. If an order is issued as a result of the hearing it can be filed as a Judgment of the Court of  King’s Bench of Manitoba without
the need to file a Statement of Claim

Financial Loss Claims Report
March 31, 2024
SUMMARY OF CLAIM ACTIVITY

Since the Financial Loss Compensation legislation was enacted in February 2003, The Manitoba Securities Commission has sent 403
letters to potential claimants advising them of their ability to make a claim. If a claim is not filed with the Commission within one year of a
letter being sent to a potential claimant, the file is closed. A further 22 claims have been initiated by claimants who made their application
directly to the MSC.

In the past fiscal year, there were no claim forms filed with the Commission.

SUMMARY OF ACTIVE CLAIMS

As at March 31, 2024 there was one claim approved by the Director for a hearing.

As at March 31, 2024 there were no pending claims being reviewed to determine if they meet the criteria set out in the legislation to have
the claim heard at a Commission hearing. This review may include ongoing investigation into the matter, or gathering of additional
information required in order to assess the claim.

SUMMARY OF CONCLUDED CLAIMS

Since inception, 64 claims have been settled without a hearing being held. 49 Financial Loss Orders have been issued by The Manitoba
Securities Commission for a total amount of $1,314,091. In 10 cases, restitution to the clients has been dealt with through the Provincial
Court system. 29 claims were rejected by the Director because the claim did not meet the criteria under The Securities Act. 11 claimants
abandoned their claims after the claim process had been initiated.