Company: INVUP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011912
Chunk: 73

Company: Investview, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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We
have recently had to respond to allegations 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.

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 marketing
communications made by this particular distributor that they characterized as “inappropriate”, and as well, alleged