Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 117

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 from Canadian Securities regulators that our iGenius business unit engaged in unlicensed regulated
securities activities; Our business could be negatively affected if we are required to defend similar allegations from securities regulators
in the United States or in other foreign countries in which we do business.

From time to
time, we receive notices or formal actions from foreign or domestic regulatory authorities or administrative agencies, which assert that
certain activities of our iGenius business constitute unlicensed activities as an unregistered securities dealer or advisor under local
laws. However, we do not believe that our iGenius business unit violates any such laws as we believe we are merely a provider of financial
education and related tools that access information that is available publicly or without a licensing requirement, or that through affinity
programs provide access to lawful services or products offered by third parties neither owned or operated by iGenius. When we are confronted
with such allegations, we may either elect to challenge the legal basis thereof when we believe it is appropriate or economically compelling,
or in the instances in which the financial impact of the relief sought is de minimis, we may elect to settle with any such regulator,
often without admitting any violation of law. Towards that end, we have recently been the target of regulatory scrutiny by securities
regulators in Canada. During 2024, we received a letter of inquiry from the Ontario Securities Commission (“OSC”) in which
they questioned whether iGenius was engaged in securities activities without being registered under their securities act. Specifically,
the OSC identified concerns that iGenius was selling ndau – which they considered an investment contract – and also noted
that they had concerns about certain third-party product offerings and access to market experts that were made available to iGenius customers.
Even though we believe that our iGenius business fully complies with all applicable securities laws, due to the immaterial scope and scale
of our operations in Ontario, Canada, we elected to settle the matter with the OSC and conclude the inquiry by implementing a geoblock
throughout Ontario such that no Ontario-based customers would be able to access any of the disputed product offerings.

35

Later in 2024,
we and one of our independent distributors received an enforcement action from the financial regulators in Quebec, Canada, known as the
Autorité des marchés financiers (the “AMF”), in which they challenged certain inappropriate marketing communications
they characterized as “inappropriate” made by this particular distributor, and as well alleged that iGenius was inappropriately