Ontario’s securities watchdog suspended the registration of Emerge Canada Inc., an investment firm known for selling Toronto-listed versions of Cathie Wood’s popular exchange-traded funds.  

The Ontario Securities Commission said the firm has failed to comply with its working-capital requirements and ordered it to wind down, or find another company to take over its activities. 

Emerge has been unable to file audited financial statements for latest fiscal year after its auditor quit. Last month, regulators hit the investment firm with trading bans on 11 of its funds — including six Ark Investment Management-partnered funds.

Emerge’s lawyers argued that suspending the firm and requiring the wind-up of Emerge ETFs “is overly punitive and is unwarranted in the circumstances.” It did not immediately reply to requests for comment.