Notices of Hearing & Temporary Orders

TURNER PHILLIPS, et. al. [Amended Temp. Order & Hearing]

BCSECCOM #:
Document Type:
Amended Temp. Order & Hearing
Published Date:
1998-04-17
Effective Date:
1998-04-02
Details:


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF TURNER PHILLIPS, STEVEN PHILLIPS,
MARK STONE, JACK EDWARDS, JEFFREY MILLER
AND RICHARD STEWART


Amended Temporary Order and Notice of Hearing Under Section 161


1. WHEREAS it appears to the Executive Director, on the advice of the Staff of the British Columbia Securities Commission (the “Commission”), that:
      1.1 Turner Phillips is not incorporated or registered as an extraprovincial company in British Columbia, and is not a reporting issuer under the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), although it has an office in Vancouver;

      1.2 Turner Phillips has established a home page on the World Wide Web which is accessible through the internet (the “Website”). The Website includes the following representations:
          a) “Turner Phillips is a full service investment dealer headquartered in Vancouver, British Columbia”;

          b) “Turner Phillips is a member of the Toronto Stock Exchange, the Alberta Stock Exchange, the Vancouver Stock Exchange, the NASDAQ and the Investment Dealers Association of Canada”;

          c) “The firm is also a member of the Canadian Investor Protection Fund which protects client cash and securities held at member firms, subject to certain limits”;

          d) “Turner Phillips maintains a full-service office in Vancouver, British Columbia and a trading office in Toronto, Ontario and Calgary, Alberta. The firm has approximately 40 employees, of whom 6 are institutional and private client investment advisors, six are employed in research, eight are securities traders, six are employed in corporate finance, and the balance are employed in operations and as support or administrative staff”;

          e) Turner Phillips’ principal business activities include securities brokerage for institutional and private clients, underwriting and distribution of securities through public offerings and private placements, and market-making and principal trading in certain corporate securities;

          f) “Turner Phillips has one registered trader and two execution traders in its Toronto office. Four additional institutional equity traders are located at the firm’s Calgary office”; and

          g) Turner Phillips has a “sales & trading team” (the “Trading Team”) comprised of:
              (i) Steven Phillips, Managing Director, Trading,
              (ii) Mark Stone, Sales and Trading,
              (iii) Jack Edwards, Sales and Trading,
              (iv) Jeffrey (Jeff) Miller, Sales and Trading, and
              (v) Richard (Rick) Stewart, Sales and Trading.

      1.3 it appears that the contents of the Website were copied virtually verbatim from the internet website of a registered investment dealer based in Calgary, Alberta;
      1.4 neither Turner Phillips nor any of the Trading Team members are registered under the Act, contrary to section 34 of the Act;

      1.5 on the Website, Turner Phillips holds itself out as being registered as an investment dealer, contrary to sections 50(1)(d) and 54 of the Act and contrary to section 11 of the Securities Rules, B.C. Reg. 194/97;

      1.6 Turner Phillips falsely represented on the Website that it is a member of the Toronto Stock Exchange, the Alberta Stock Exchange, the Vancouver Stock Exchange, the Investment Dealers Association, the NASDAQ, and the Canadian Investor Protection Fund, contrary to section 50(1)(d) of the Act;

      1.7 representatives of Turner Phillips have also directly solicited prospective clients outside British Columbia for the purpose of effecting a trade in securities, contrary to section 34(1) of the Act;

      1.8 the investigation by the Staff in this matter is continuing and is not yet completed;

2. AND WHEREAS the Executive Director considers the length of time to hold a hearing under section 161(1) of the Act could be prejudicial to the public interest;

3. NOW THEREFORE the Executive Director, considering it would be in the public interest to do so, orders, pursuant to section 161(2) of the Act that:

      3.1 the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act do not apply to Turner Phillips, Steven Phillips, Mark Stone, Jack Edwards, Jeffrey Miller and Richard Stewart (collectively, the “Respondents”) pursuant to section 161(1)(c) of the Act;
          until April 15 , 1998 (the “Temporary Order”).
4. TAKE NOTICE that a hearing will be held at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, on April 15, 1998, at 10:00 a.m. (the “Hearing”);

5. AND TAKE NOTICE that at the Hearing, Staff will bring the following applications:

      5.1the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act do not apply to the Respondents, pursuant to section 161(1)(c) of the Act;

      5.2that Steven Phillips, Mark Stone, Jack Edwards, Jeffrey Miller and Richard Stewart (the “Individual Respondents”) resign any position that each holds as a director or officer of any issuer and each is prohibited from becoming or acting as a director or officer of any issuer, pursuant to section 161(1)(d) of the Act;

      5.3that the Individual Respondents be prohibited from engaging in investor relations activities, pursuant to section 161(1)(d) of the Act; and

      5.4 that the Temporary Order be extended until such time as the Hearing in this matter is held and a decision rendered on the merits;
6. AND TAKE NOTICE that the Respondents may eachbe represented by counsel at the Hearing and may make representations and lead evidence. The Respondents are each requested to advise the Commission of their respective intention to attend the Hearing by contacting the Secretary of the Commission, at 1200 - 865 Hornby Street, Vancouver, British Columbia, V6Z 2H4;

7. AND TAKE NOTICE that determinations may be made in this matter if theRespondents or their respective counsel do not appear at the Hearing.


DATED at Vancouver, British Columbia, on April 2, 1998.






J.A. (Sandy) MacDonald
A/Executive Director
©2024 British Columbia Securities Commission