IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8 (the “Act”), in
particular section 108.2;

AND IN THE MATTER OF the Pension Plan for the Employees of Higginson Equipment
Inc., Registration Number 0259606.

NOTICE OF INTENDED DECISION TO IMPOSE ADMINISTRATIVE PENALTIES

TO: Higginson Equipment Inc.
PO Box 5011 Stn LCD 1
#1-1175 Corporate Drive,
Burlington, ON L7L 5V5

Attention:
Bill Allen, President
Caryes Allan, Vice President

Employer & Administrator

TAKE NOTICE THAT pursuant to section 108.2 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Head, Pension Plan Operations and Regulatory Effectiveness (the “Head”) intends the following administrative penalties on Higginson Equipment Inc.:

1. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for April 2025, contrary to section 4(4) of Regulation 909.
2. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for May 2025, contrary to section 4(4) of Regulation 909.
3. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,895.30 for June 2025, contrary to section 4(4) of Regulation 909.
4. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for July 2025, contrary to section 4(4) of Regulation 909.
5. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for August 2025, contrary to section 4(4) of Regulation 909.

Details of these contraventions or failures to comply are described below.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca.

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTION 108.2(5) OF THE ACT. A hearing by the Tribunal about this Notice of Intended Decision may be requested by completing the
enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen
(15) days after this Notice of Intended Decision is served on you. The Request for Hearing
Form (Form 1) must be mailed, delivered, faxed, or emailed to:

Address:
Financial Services Tribunal
25 Sheppard Avenue West, 7^th Floor
Toronto, Ontario
M2N 6S6

Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Intended Decision is served on you, an order will be issued as described in this Notice of Intended Decision.

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephoning the Registrar of the Tribunal at 416-590-7294, or toll free at 1-800-668-0128 extension 7294.

REASONS FOR INTENDED DECISION

I. INTRODUCTION

1. The Head intends to impose five (5) administrative penalties in the total amount of $19,000 on Higginson Equipment Inc. as follows:
   1. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for April 2025, contrary to section 4(4) of Regulation 909.
   2. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for May 2025, contrary to section 4(4) of Regulation 909.
   3. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,895.30 for June 2025, contrary to section 4(4) of Regulation 909.
   4. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for July 2025, contrary to section 4(4) of Regulation 909.
   5. An administrative penalty of $3,800.00 for failing to remit required contributions of $1,901.52 for August 2025, contrary to section 4(4) of Regulation 909.

II. BACKGROUND

2. Higginson Equipment Inc. sponsors and administers the Pension Plan for the Employees of Higginson Equipment Inc., Registration Number 0259606 (the “Plan”). The Plan is a single-employer defined contribution pension plan with 13 members based on the last Annual Information Return filed on July 9, 2025.
3. Between January 2023 and March 2024, Higginson Equipment Inc. failed to remit employer and employee contributions to the Plan custodian (the “Custodian”).
4. On August 13, 2024, FSRA issued an order requiring Higginson Equipment Inc. to remit all outstanding pension contributions with interest (the “Regulatory Order”).
5. After repeated communications from FSRA, Higginson Equipment Inc. remitted all employee contributions and entered into a payment plan to remit outstanding employer contributions.
6. FSRA directed that Higginson Equipment Inc. give notice of its failure to remit contributions to Plan members.
7. Higginson Equipment Inc. eventually remitted outstanding contributions to the Custodian for the period from January 2023 to March 2024, on October 31, 2024.
8. FSRA issued a warning letter to Higginson Equipment Inc. on November 12, 2024 (the “Warning Letter”). The Warning Letter reminded Higginson Equipment Inc. of the requirement to remit employer and employee contributions to the Custodian in a timely manner.
9. Beginning in May 2025, the Employer failed to remit employer and employee contributions of approximately $1,900 per month to the Custodian. To date, the Employer has failed to remit contributions for the period from April to August 2025.
10. The Custodian communicated with Higginson Equipment Inc. regarding its failure to remit contributions. Higginson Equipment Inc. told the Custodian that the delay was due to a change in their corporate bank and the transition had been taking longer than anticipated.
11. On August 18, 2025, FSRA sent a letter to Higginson Equipment Inc. directing it to bring the plan into compliance by no later than September 2, 2025. Higginson Equipment Inc. failed to respond and has not brought the Plan into compliance by remitting the outstanding contributions.
12. Presently both the employer and employee contributions are outstanding for the months of April to August 2025 in the approximate total amount of $9,500.

III. CONTRAVENTION OR FAILURE TO COMPLY WITH THE ACT

13. Section 55(2) of the Act requires an employer to make contributions in accordance with the prescribed requirements, in the prescribed manner, and at the prescribed times.
14. Section 4(4) of Regulation 909 requires that employer contributions for a defined contribution pension plan be paid in monthly instalments within 30 days following the month for which the contributions are payable. Section 4(4) of Regulation 909 also requires that all sums received by the employer from the employee as the employee’s contribution to the pension plan be remitted within 30 days following the month in which the sums were received or deducted.
15. Higginson Equipment Inc. failed to remit employer and employee contributions to the Custodian for the period from April to August 2025, as required by section 4(4) of Regulation 909.

IV. GROUNDS FOR IMPOSING THE ADMINISTRATIVE PENALTIES

The Head is satisfied that five (5) administrative penalties in the total amount of $19,000.00 should be imposed on Higginson Equipment Inc. under section 108.2 of the Act for contravening or failing to comply with section 4(4) of Ontario Regulation 909.

16. The Head is satisfied that the imposition of administrative penalties on Higginson Equipment Inc. under section 108.2 of the Act will satisfy both of the following purposes under section 108.1(2) of the Act:
    1. To promote compliance with the requirements established under the Act.
    2. To prevent a person or entity from deriving, directly or indirectly, any economic benefit as a result of contravening or failing to comply with a requirement established under the Act.
17. In proposing the imposition of five (5) administrative penalties in the total amount of $19,000.00 on Higginson Equipment Inc., the Head has considered the following criteria as required by section 3 of Ontario Regulation 365/17:
    1. The degree to which the contravention or failure was intentional, reckless or negligent.
    2. The extent of the harm or potential harm to others resulting from the contravention or failure.
    3. The extent to which Higginson Equipment Inc. tried to mitigate any loss or to take other remedial action.
    4. The extent to which Higginson Equipment Inc. derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure.
    5. Any other contraventions of or failures to comply with a requirement established under the Act or with the pension benefits legislation of a designated jurisdiction during the preceding five years by the person.
18. In respect of the first criterion, the Head is satisfied that Higginson Equipment Inc.’s contravention was intentional. Higginson Equipment Inc. previously failed to comply with the requirement to remit contributions under section 4(4) of Regulation 909. As a result of this contravention, Higginson Equipment Inc. was subject to the Regulatory Order and the Warning Letter. FSRA staff and the Custodian have notified Higginson Equipment Inc. of the present contraventions. FSRA staff have not received any response.
19. In respect of the second criterion, the Head is satisfied that the harm caused is serious. Approximately $9,500 in employer and employee contributions remain outstanding. The failure to remit employee and employer contributions promptly to the Custodian is a misappropriation of the deferred compensation of Plan members and breaches a fundamental obligation of pension plan administrators. When contributions are not remitted in a timely manner, Plan members can miss out on investment returns which would otherwise accrue to their pension accounts.
20. In respect of the third criterion, Higginson Equipment Inc. has failed to take remedial action in relation to its contraventions. Despite notice from FSRA and the Custodian, Higginson Equipment Inc. has not remitted outstanding contributions to the Custodian or indicated whether it intends to do so.
21. In respect of the fourth criterion, the Head is satisfied that Higginson Equipment Inc. has derived economic benefit from its failure to remit contributions. Approximately $4,750 in expected employee contributions presumably withheld from employee compensation have been held by Higginson Equipment and not remitted.
22. In respect of the fifth criterion, Higginson Equipment Inc. previously contravened section 4(4) of Regulation 909 in relation to required pension contributions between January 2023 and March 2024. In response to these contraventions, FSRA issued the Regulatory Order.
23. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, October 1, 2025

Original signed by

David Bartucci
Head, Pension Plan Operations and Regulatory Effectiveness

By delegated authority from the Chief Executive Officer

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