What is commercial insolvency?
A company in Canada becomes insolvent when it is unable to pay its debts as they become due, and may result in bankruptcy. The bankruptcy of a company may have severe adverse affects on its customers, including potential financial loss, and is an important consideration before engaging in business with a company. Given the nature of our business at goPeer, this is often a top-of-mind concern for our customers.
How is my investment protected?
goPeer has been diligently structured to protect its customers in the unlikely event of insolvency and mitigates risk through the maintenance of a Business Continuity Plan, in compliance with securities regulation.
Customer funds are held within a CDIC insured trust account with a major Canadian Bank, which provides protection from goPeer creditors. If goPeer were to fail (or close to new business for whatever reason), then the contracts between goPeer and borrowers remain legally valid, and borrowers will be required to continue making payments to lenders as usual. In such an event the goPeer Board of Directors will name a licensed insolvency trustee (LIT) to oversee this process and continue to service the loans.
Is goPeer regulated?
goPeer Corporation and wholly owned subsidiaries, Peer Capital Corporation and Peer Securities Corporation, operate within the scope of numerous federal and provincial government regulators, primarily enacted for the purpose of protecting consumers.
Most noteworthy is regulation of our securities business, overseen by The Ontario Securities Commission (OSC) – the regulatory agency that administers and enforces securities legislation in the Canadian province of Ontario. goPeer additionally maintains registration with provincial securities regulators across Canada, allowing our securities to be offered nationwide.
The Exempt Market Dealer registration of Peer Securities Corporation, under the dba name of goPeer, can be verified using The Canadian Securities Administrators' National Registry Search (CSA).