Settlements
BMO INVESTORLINE INC., et. al. [Settlement Agrmnt]
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BCSECCOM #:
2001 BCSECCOM 1147
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Document Type:
Settlement Agrmnt
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Published Date:
2001-12-06
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Effective Date:
2001-12-04
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Details:
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2001 BCSECCOM 1147
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF
BMO INVESTORLINE INC.,
CANACCORD CAPITAL CORPORATION,
CIBC INVESTOR SERVICES INC.,
CIBC WORLD MARKETS INC.,
E*TRADE CANADA SECURITIES CORPORATION,
MERRILL LYNCH HSBC CANADA INC.,
PACIFIC INTERNATIONAL SECURITIES INC.,
ROYAL BANK ACTION DIRECT INC.,
SCOTIA DISCOUNT BROKERAGE INC.,
TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.,
UNION SECURITIES LTD.,
WOLVERTON SECURITIES LTD., AND
YORKTON SECURITIES INC.
(THE REGISTRANTS)
Settlement Agreement
[para 1]
1. The following settlement of issues has been reached between the Registrants and the Executive Director.
Agreed Statement of Facts
[para 2]
2. Solely for securities regulatory purposes in British Columbia and elsewhere, and as the basis for the undertakings referred to in paragraph 3 of this Settlement Agreement (the Agreement), each Registrant acknowledges the following facts as correct:
2.1 The Registrants are registered under the Securities Act, R.S.B.C. 1996, c. 418 (the Act) with the British Columbia Securities Commission (the Commission) as investment dealers and are members of the Investment Dealers Association of Canada (the IDA). The Registrants are also registered under the securities legislation of other jurisdictions in Canada.
2.2 Thermo Tech Technologies Inc. (the Issuer) is incorporated under the Canada Business Corporations Act and is a reporting issuer under the Act. The Issuer is not a reporting issuer in any other jurisdiction in Canada.
2.3 The shares of the Issuer are traded in the United States on the NASD Over-the-Counter Bulletin Board and are quoted on the Nasdaq quotation system. The shares of the Issuer are not traded or quoted on any Canadian exchange or market.
2.4 On July 14, 1999, Staff of the Commission (the Staff) issued a cease trade order (the Order) under section 164 of the Act that all persons in British Columbia cease trading in the securities of the Issuer.
2.5 The Order was made public in the Commission’s Weekly Summary for the week ending July 16, 1999.
2.6 On February 16, 2000, Staff issued an order under section 171 of the Act varying the Order to permit, subject to its limitations, British Columbia residents to sell securities of the Issuer that were acquired on or before July 14, 1999 (the Partial Revocation Order).
2.7 The Partial Revocation Order was made public in the Commission’s Weekly Summary for the week ending February 18, 2000.
2.8 During the period in which trading in the securities of the Issuer was prohibited or restricted, as a result of deficiencies in their internal systems the Registrants, and in certain cases their affiliates, executed trades in securities of the Issuer on behalf of their clients contrary to the Order and the Partial Revocation Order.
2.9 At no time has any securities regulatory authority other than the Commission issued an order prohibiting or restricting trading in securities of the Issuer.
2.10 At no time has any exchange or other market halted or otherwise restricted trading in securities of the Issuer.
Undertaking
[para 3]
3.1 Each of the Registrants undertakes that, within 12 months of the date of this Agreement, it will develop and implement, with the assistance of the Commission to the extent necessary, either (a) an interface between a Commission database listing cease trade orders and related revocation and variation orders (the CTOs) and the order management systems used by the Registrant, or (b) another process that informs the Registrant of outstanding CTOs on a current basis.
3.2 The Registrants undertake to pay to the Commission $376,000 as follows:
3.2.1 $26,000 to be retained by the Commission as a contribution towards the costs of the investigation; and
3.2.2 the balance to be used by the Commission at its discretion to assist in the development and implementation of the process referred to in section 3.1.
Waiver
[para 4]
4. The Registrants waive any right they may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with, or incidental to this Agreement.
Signature in Counterpart
[para 5]
5. The Registrants and the Executive Director agree that this Agreement may be signed in counterpart.
DATED at Toronto, Ontario, on November 22, 2001.
BMO INVESTORLINE INC.
Per: “Tom Flanagan”
Authorized Signature
Capacity: President & C.O.O.
“Carlos Pinto Lobo” )
Witness Signature )
)
Carlos Pinto Lobo )
Witness Name (Please Print) )
- )
Address )
)
Chief Compliance Officer )
Occupation )
DATED at Vancouver, British Columbia, on November 21, 2001.
CANACCORD CAPITAL CORPORATION
Per: “Dennis Burdett”
Authorized Signature
Capacity: Executive Vice President
“K. Titterton” )
Witness Signature )
)
Keith Titterton )
Witness Name (Please Print) )
- )
Address )
)
VP Manager Compliance )
Occupation )
DATED at Toronto, Ontario, on November 19, 2001.
CIBC INVESTOR SERVICES INC.
Per: “Guenther W.K. Kleberg”
Authorized Signature
Capacity: Chief Compliance Officer
“W. Bolton” )
Witness Signature )
)
Wayne Bolton )
Witness Name (Please Print) )
- )
Address )
)
Executive Director, CIBC World Markets )
Occupation )
DATED at Toronto, Ontario, on November 19, 2001.
CIBC WORLD MARKETS INC.
Per: “Guenther W.K. Kleberg”
Authorized Signature
Capacity: Chief Compliance Officer - Retail
“W. Bolton” )
Witness Signature )
)
Wayne Bolton )
Witness Name (Please Print) )
- )
Address )
)
Executive Director, CIBC World Markets )
Occupation )
DATED at Toronto, Ontario, on November 19, 2001.
E*TRADE CANADA SECURITIES CORPORATION
Per: “Ron White”
Authorized Signature
Capacity: Chief Financial Officer
“P. Sorbara” )
Witness Signature )
)
Paul Sorbara )
Witness Name (Please Print) )
- )
Address )
)
Legal Counsel )
Occupation )
DATED at Toronto, Ontario, on November 20, 2001.
MERRILL LYNCH HSBC CANADA INC.
Per: “Peter Hickman”
Authorized Signature
Capacity: CEO
“S. Preradovich” )
Witness Signature )
)
Sonja Preradovich )
Witness Name (Please Print) )
- )
Address )
)
Sr. Executive Assistant )
Occupation )
DATED at Vancouver, British Columbia, on November 19, 2001.
PACIFIC INTERNATIONAL SECURITIES INC.
Per: “Richard Thomas”
Authorized Signature
Capacity: Vice President Compliance
“L. McQuid” )
Witness Signature )
)
Lawrence McQuid )
Witness Name (Please Print) )
- )
Address )
)
Executive )
Occupation )
DATED at Toronto, Ontario, on November 23, 2001.
ROYAL BANK ACTION DIRECT INC.
Per: “Doce Tomic”
Authorized Signature
Capacity: President & CEO
“B. Moore” )
Witness Signature )
)
Brent H. Moore )
Witness Name (Please Print) )
- )
Address )
)
VP, Compliance, Royal Bank Action Direct Inc. )
Occupation )
DATED at Toronto, Ontario, on November 19, 2001.
SCOTIA DISCOUNT BROKERAGE INC.
Per: “Marianne Hasold-Schilter”
Authorized Signature
Capacity: Chief Operating Officer
“Sandra Dlgnan” )
Witness Signature )
)
Sandra Dlgnan )
Witness Name (Please Print) )
- )
Address )
)
Head of Compliance )
Occupation )
DATED at Toronto, Ontario, on November 20, 2001.
TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.
Per: “Gerard O”Mahoney”
Authorized Signature
Capacity: Chief Operating Officer
“J. Souter” )
Witness Signature )
)
Juanita M. Souter )
Witness Name (Please Print) )
- )
Address )
)
Chief Compliance Officer )
Occupation )
DATED at Vancouver, British Columbia, on November 20, 2001.
UNION SECURITIES LTD.
Per: “John Thompson”
Authorized Signature
Capacity: CEO
“N. Maarsman” )
Witness Signature )
)
Nancy Maarsman )
Witness Name (Please Print) )
- )
Address )
)
Executive Assistant )
Occupation )
DATED at Vancouver, British Columbia, on November 21, 2001.
WOLVERTON SECURITIES LTD.
Per: “Brent N. Wolverton”
Authorized Signature
Capacity: President
“Joan F. Rogers” )
Witness Signature )
)
Joan F. Rogers )
Witness Name (Please Print) )
- )
Address )
)
Executive Assistant )
Occupation )
DATED at Calgary, Alberta, on November 20, 2001.
YORKTON SECURITIES INC.
Per: “Patrick McNenly”
Authorized Signature
Capacity: Director of Compliance
“Craig Leggatt” )
Witness Signature )
)
Craig Leggatt )
Witness Name (Please Print) )
- )
Address )
)
Asst. VP Compliance )
Occupation )
DATED at Vancouver, British Columbia, on December 4, 2001.
Steve Wilson
Executive Director