Vancouver-based Addy has been fined $100,000 by the BC Securities Commission for trading real estate securities without registration—marking a notable first ruling on fractional investing in Canada. Addy allowed investors to buy into properties for as little as $1, facilitating $26 million in trades over five years.
The company tried claiming a crowdfunding exemption, but the BCSC found this did not apply. Addy is now seeking registration as an exempt market dealer. As fintech outpaces regulation, legal experts cite “regulatory lag” in adapting securities laws to new investment platforms.
Want to know more? Check out the source code on The Logic.