News Release

Released: March 26, 1999 Contact: Michael Bernard
899-6500 or
(BC only) 1-800-373-6393

Vancouver -- A British Columbia Securities Commission panel has rejected a broker’s request to stay a Vancouver Stock Exchange disciplinary hearing against him, saying the broker’s request was premature.

Jean-Claude Hauchecorne, a registered representative at Pacific International Securities, appealed to the commission, alleging that when a VSE panel was hearing final submissions against him in a disciplinary hearing that the panel chair made statements that demonstrated a "reasonable apprehension" of bias in the case. He asked the commission for an order staying the VSE proceedings and directing that no sanction be imposed.

The commission, however, said that his application was premature.

In a decision released today, the commission, said in its view the VSE panel should be allowed to complete its hearing process and render its final decision on sanction before a request for a stay was considered.

"In that way, all of the issues arising out of the hearing, including any on penalty and those raised by Commission staff, can be dealt with at one time at the hearing and review," the commission panel said. "In addition, once the Exchange renders its decision on sanction, Hauchecorne has the option of coming back before the Commission on short notice to seek a stay."

Hauchecorne was cited by the VSE for 25 infractions of exchange rules including breaching the "know your client rule", failing to identify the beneficial owner of certain trading accounts, all of which were offshore in jurisdictions where the owner’s identity is protected by secrecy legislation, and assisting in the unauthorized transfer of accounts.

Hauchecorne admitted to or was found liable for 21 of 25 infractions while another four relating to offshore accounts were dismissed by the VSE panel. A hearing to consider sanctions against him is scheduled for April 14, 1999.

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision are available at the commission’s Web site (www.bcsc.bc.ca) or by calling Communications Manager Michael Bernard.