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News Release

Commission bans former securities dealer director

  • Date:

    2003-05-09

  • Number:

    2003/38

Vancouver – The B.C. Securities Commission has banned a former securities dealer director from management roles with dealers for failing to properly supervise a former employee who sold unsuitable securities to clients.

In a settlement with the commission, Graham Martin Hope, 56, is prohibited from being a compliance officer, branch manager, trading partner, director or officer of any issuer that is a registrant for at least five years. He is also banned from being a director or officer of any issuer that provides management, consulting or administrative services to registrants.

Hope was the sole director of 576928 B.C. Ltd. (formerly known as Moneywatch Consultants Ltd.) when the numbered company was registered as a securities dealer from July 9, 1996 to June 16, 1997. It was during this period that one of the company’s registered representatives, Alain Germain Chevalier, sold securities products that Chevalier later admitted were speculative securities unsuitable for his clients. During this time, Hope was registered with the company as a trading partner, director and officer.

(In February 2003, the commission entered into a settlement with Chevalier.)

Hope and the numbered company’s failure to adequately supervise Chevalier’s sales included the company lacking the methods, procedures or systems to properly:

· review trading activity in Chevalier’s client accounts;
· reveal how many clients Chevalier and 576928 had;
· ensure each of Chevalier’s client accounts contained appropriate documentation such as a New Client Application Form (NCAF) or Know Your Client (KYC) form, or a complete NCAF or KYC; and
· ensure all of the exempt products sold by Chevalier had been approved for sale by 576928.

As part of the settlement, Hope has also been ordered to pay the commission $10,000.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the settlement agreement can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.
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