Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 151

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 1
Chunk 151
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 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
engaging in regulated securities activity without being appropriately registered to do so in Quebec. In discussions with the AMF, it became
clear that the focus of their inquiry was on certain “touting” of financial results by this particular distributor which we
concluded was unauthorized and in violation of our own internal policies and we terminated the distributor. As well, the AMF asserted
that iGenius acted in contravention of securities regulations that require registration to effectuate the sale of securities in Quebec,
by failing to register with the AMF while enabling its members to gain access to certain third-party “robotic” trading platforms,
even though iGenius, among others: (x) derives no direct financial benefit from these introductions; and (b) has no involvement with the
provision of services by the third-party to whom its members are introduced. 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 Quebec, Canada, we have engaged in settlement
discussions with the AMF in order to avoid a protracted and costly legal dispute. In addition