Settlements

FORESIGHT CAPITAL CORPORATION [Agreed Stmt.]

BCSECCOM #:
Document Type:
Agreed Stmt.
Published Date:
2000-05-19
Effective Date:
2000-05-10
Details:


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

AND

IN THE MATTER OF FORESIGHT CAPITAL CORPORATION


Agreed Statement of Facts and Undertaking

The following agreement has been reached between FORESIGHT CAPITAL CORPORATION (“Foresight”) and the Executive Director:

1. As a basis for the orders and undertaking referred to below, Foresight acknowledges the following:
      1.1 Foresight is a corporation incorporated under the laws of British Columbia on February 1, 1996, and its head office within British Columbia is suite 1020, 4710 Kingsway, Burnaby, B.C.;

      1.2 Foresight has been registered, pursuant to section 34 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”) as a securities dealer in British Columbia since June 9, 1997;

      1.3 Commission staff, as part of a routine examination of Foresight on or about May 18th to 26th, 1999 determined that from June 9, 1997 until May 26, 1999 (the “Relevant Period”), Foresight failed to keep at its chief place of business in British Columbia a complete and accurate record of its business transactions and financial affairs that were conducted in British Columbia. Such failure by Foresight was a contravention of section 27 of the Securities Rules, B.C. Reg. 194/97 (the “Rules”);

      1.4 during the Relevant Period, Foresight failed to establish and apply written prudent business procedures for dealing with clients. Such failure by Foresight was a contravention of section 44(1) of the Rules;

      1.5 during the Relevant Period, Foresight designated a compliance officer and branch managers to approve the opening of new client accounts and to supervise transactions made on behalf of clients. However, the compliance officer and branch managers failed to properly approve the new client accounts and supervise transactions made on behalf of clients. Foresight failed to properly supervise the compliance officers and branch managers to ensure that they adequately performed their duties and followed company procedures, and, as a result, Foresight contravened section 47 of the Rules; and

      1.6 Foresight failed to make enquiries concerning their clients in order to determine the general investment needs and objectives of the clients, the appropriateness of recommendations made to the clients, and the suitability of proposed purchases or sales for the clients. Such failures by Foresight were contraventions of section 48 of the Rules.

2. Foresight consents to an order by the Executive Director under section 161(1)(f) of the Act (the “Order”) that Foresight, as a condition of its registration, will:
      (a) from the date of this agreement, not make application to register more than ten (10) registered representatives under its registration unless and until it establishes and implements a compliance program acceptable to the Executive Director. Such a compliance program for Foresight will rectify the deficiencies identified in the recent examination, including, but not limited to:
          (i) review of trades and evidence of such reviews being performed;
          (ii) enforcement of established business procedures;
          (iii) maintenance of required documentation at the head office in British Columbia;
          (iv) creation of on-site review program of branch and non-branch offices; and,
          (v) hiring of a full time compliance officer.

      Once Foresight has established such a compliance program, Foresight may apply to the Executive Director for removal of this condition;
      (b) submit to the Registration Division of the British Columbia Securities Commission, on the 15th day of each month following the date of the Order, and continuing for a period of twelve (12) months, a monthly compliance report. This monthly compliance report will outline the weekly and monthly compliance duties that were performed by the compliance officers and branch managers of Foresight, and the reports that were completed and approved by the compliance officers and branch managers; and

      (c) within eighteen months from the date of the Order, conduct on-site examinations at all branch and home-based offices of all Foresight representatives based in the province of British Columbia to ensure compliance with the Act and the Rules by Foresight and its representatives at those offices.

3. Foresight undertakes to pay to the Commission the sum of $10,000 in the form of a penalty, which will be paid into the Industry Education Fund on the execution of this agreement.
    4. Foresight 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.


        DATED at Burnaby, British Columbia, on May 10, 2000.


    “M. Sorbo” )
    Witness Signature )
    M. Sorbo ) FORESIGHT CAPITAL CORPORATION
    Witness Name (Please print) )
    BCSC - 200 - 865 Hornby St. )
    Vancouver, BC )
    Address ) Per: “G. Wong”
    Auditor ) Authorized Signatory
    Occupation )

    DATED at Vancouver, British Columbia, on May 10, 2000.



    Martin Eady
    A/Executive Director
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