Emerge Canada, which operates several exchange traded funds (ETFs) in partnership with Cathie Wood’s Ark Invest, has been slapped with a trading ban.
Regulators in Canada hit Emerge Canada with trading bans on 11 of its ETFs, including six Ark Invest funds, after it missed several regulatory filing deadlines.
Emerge Canada’s funds, some of which are up more than 20% this year, can’t be traded and it’s not clear when the ban will be lifted.
Emerge Canada’s auditor, BDO, resigned last November.
On April 6, the Ontario Securities Commission (OSC) issued cease-trade orders requiring that all trading of Emerge Canada’s funds, including redemptions and distributions, must stop.
The OSC said that Emerge Canada did not file its year-end annual disclosure documents as required by law.
Emerge Canada said it is working to hire a new auditor and get the trading ban removed. Ark Invest, which is based in the U.S., said it is re-evaluating its relationship with Emerge Canada.
Ark Invest, which is led by Cathie Wood, has itself come under scrutiny over the last year after many of its funds suffered sharp declines as some of its technology holdings lost 80% or more of their value.
