The Investment Industry Regulatory Organization of Canada (IIROC) said Tuesday it has terminated the membership of Toronto-based Edgecrest Capital.
IIROC suspended the boutique investment house in September, after the firm was unable to address a growing capital shortfall.
Edgecrest joined IIROC in September 2013, and was headed up by David Beatty, chairman and CEO. In 2014 it acquired Toronto's Stonecap Securities in an effort to build scale but a prolonged bear market in mining and energy forced the company to lay off staff as regulatory sanctions increased and capital dwindled.
IIROC said the termination order is effective immediately.