News Release

Vancouver – The British Columbia Securities Commission has reached a settlement with a mutual funds salesperson who admitted to breaching know your client and suitability rules when he recommended leveraged investments to clients.

Martin Raymond Hall, a B.C. resident, is barred from trading securities other than mutual funds for three years except in limited circumstances. As well, Hall’s registration is subject to conditions for at least 12 months, including: daily strict supervision by his employer of his client and personal trading as well as restrictions on his ability to deal with clients who use leveraged funds to purchase mutual funds.

Hall was a registered salesperson at Foresight Capital Corp. from Jan. 7, 1999 to July 3, 2002. During his employment at Foresight, Hall recommended to two clients that they purchase mutual funds using money borrowed against the equity in their homes. The clients each had some or all of the following characteristics:

• Low to average net worth
• Little or no investment experience and sophistication
• Limited income, and
• Low tolerance for investment risk

Hall breached section 48 of the Securities Rules (know your client and suitability rules), when he recommended the unsuitable and inappropriate leveraged investments for the clients. He also breached section 14 of the Rules when he signed a client’s name on account and bank transfer documents.

With this settlement, Hall is no longer a respondent in the hearing currently underway at the BCSC.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website www.bcsc.bc.ca by typing in the search box, Martin Raymond Hall or 2005 BCSECCOM 701. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.