BCSC

Settlements

CANADIAN GLOBAL INVESTMENT CORPORATION, et. al. [Agreed Stmt]

BCSECCOM #:	Document Type: Agreed Stmt
Published Date: 1997-11-14	Effective Date: 1997-11-07
Details:

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

AND

IN THE MATTER OF CANADIAN GLOBAL INVESTMENT CORPORATION
(FORMERLY JOHNSTON SIMISTER FINANCIAL SERVICES LTD.)

AND

IN THE MATTER OF DANNY FRANCIS BILINSKI

Agreed Statement of Facts and Undertaking

The following agreement has been reached between Canadian Global Investment Corporation (“Canadian Global”) (formerly Johnston Simister Financial Services Ltd.), Danny Francis Bilinski (“Bilinski”) and the Executive Director:

1. As a basis for the undertaking referred to in paragraph 4 of this agreement, Canadian Global acknowledges the following facts as correct:

(a) Canadian Global is a corporation incorporated under the laws of Canada on June 27, 1994;

(b) Canadian Global has been registered, pursuant to section 34 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”) as a mutual fund dealer since June 24, 1996;

(c) Canadian Global was required, pursuant to section 47 of the Securities Rules, B.C. Reg.479/95 (the “Rules”), to designate, to approve the opening of new client accounts and supervise transactions made on behalf of clients, a compliance officer;

(d) Canadian Global was required, pursuant to section 19(5) of the Rules, to maintain working capital, calculated in accordance with the required form, equal to, or greater than, $25,000 plus the maximum amount deductible under any bond required under section 21 of the Rules;

(e) Canadian Global was required, pursuant to section 41(1)(c) of the Rules, to prepare a capital record within 30 days following the end of each month that must show,

inter alia

, working capital, calculated in the required form, and, where the capital record indicated that Canadian Global did not meet the requirements for working capital required by section 19(5) of the Rules, Canadian Global was required, pursuant to section 41(2)(b) of the Rules, to notify immediately the Executive Director, in writing;

(f) Canadian Global was required, pursuant to sections 70(3)(a) and 70(6)(b)

of the Rules, to file a report of working capital in the required form, monthly, on or before the 30th day after the date to which the report is made up;

(g) Canadian Global was required, pursuant to section 27(1)(b) of the Rules, to maintain at its chief place of business in British Columbia a complete and accurate record of its business transactions and financial affairs that are conducted in or out of British Columbia, including, pursuant to section 27(2) of the Rules, blotters, confirmations, orders and instructions; and

(h) Commission staff, as part of a routine compliance examination of

Canadian Global on or about June 2 to June 6, 1997 determined that, at all relevant times:

(i) Canadian Global failed to designate a compliance officer, as referred to in paragraph (c), or, if Canadian Global did designate a compliance officer, the compliance officer failed to approve the opening of new client accounts and supervise transactions made on behalf of clients;

(ii) Canadian Global failed to maintain minimum capital of $25,000 plus maximum deductible on any bond required by section 21 of the Rules, as referred to in paragraph (d), on more than one occasion during the nine-month period ending May 31, 1997;

(iii) Canadian Global failed to prepare a capital record within 30 days following the end of each month, as referred to in paragraph (e), which record would have indicated that Canadian Global did not meet the requirements for working capital, and Canadian Global failed to notify immediately the Executive Director, in writing, that it did not meet the requirements for working capital, also as referred to in paragraph (e);

(iv) Canadian Global failed to file reports of working capital in the required form, monthly, on or before the 30th day after the date to which the reports were made up, as referred to in paragraph (f); and

(v) Canadian Global failed to maintain a complete and accurate record of its business transactions and financial affairs at its head office, including blotters, confirmations, orders and instructions, as referred to in paragraph (g).

2. As a basis for the undertaking referred to in paragraph 5 of this agreement, Bilinski acknowledges the following facts as correct:

(a) Bilinski was, including at all relevant times referred to in paragraph 1(h), the individual designated by Canadian Global under section 47 of the Rules to approve the opening of new client accounts and supervise transactions made on behalf of clients; and

(b) Commission staff, as part of a routine compliance examination of Canadian Global on or about June 2 to June 6, 1997 determined that, at all relevant times, Bilinski failed to approve the opening of certain new client accounts and supervise certain transactions made on behalf of clients, as referred to in paragraph (a).

3. Canadian Global and Bilinski have cooperated fully with Commission staff in the compliance examination referred to in paragraphs 1(h) and 2(b) and in the resolution of deficiencies identified by Commission staff during the examination.

4. Canadian Global undertakes to pay to the order of the B.C. Securities Commission the sum of $18,000.00 on the execution of this agreement.

5. Bilinski undertakes to pay to the order of the B.C. Securities Commission the sum of $2,500.00 on the execution of this agreement.

6. Canadian Global waives any right it may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal relating to, in connection with or incidental to this agreement.

7. Bilinski waives any right he may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal relating to, in connection with or incidental to this agreement.

Dated at Abbotsford, B.C., on November 05, 1997.

________________________ )
Witness Signature )
Lindy Arnot )
Witness Name (Please print) )
#5 32298 S Fraser Way ) CANADIAN GLOBAL INVESTMENT CORP.
Abbotsford B.C. V2T 1W9 )
Address ) per: Dan Bilinski
Manager of Client Services ) [please print name below signature]
Occupation )

________________________ )
Witness Signature )
Lindy Arnot )
Witness Name (Please print) )
#5 32298 S Fraser Way )
Abbotsford B.C. V2T 1W9 )
Address ) Dan Bilinski
Manager of Client Services ) DANNY FRANCIS BILINSKI
Occupation )

DATED at Vancouver, British Columbia, on November 7th, 1997.

Paul C. Bourque
Executive Director