Approved Person
Disciplined
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Notice to Members 49/98
By way of an Offer of Settlement, James Chun Wai Chan ("Chan"), an Approved
Person employed by Haywood Securities Inc. ("Haywood"), has agreed to the
imposition of the following penalties by the Exchange for violation of Exchange By-Law
5.01(2):
- payment of a fine in the amount of $5,000;
- successful re-write of the examination based on the Conduct and Practices Handbook for
Securities and Industries Professionals, and
- assessment of investigative costs in the amount of $750.
By-Law 5.01(2) states in part, that an "infraction" means any
conduct, proceeding or method of business which is unbecoming or inconsistent with just
and equitable principles of trade or detrimental to the interests of the Exchange or the
public.
Chan, during the period January 1, 1995, to January 31, 1996, entered
into loan agreements with two of his clients. Firstly on one occasion, Chan loaned his
client $20,000 by way of a personal cheque payable to the client. Secondly, Chan borrowed
$6,100 from another client by way of a personal cheque issued by that client payable to
Chan.
Chan thereby violated Exchange By-Law 5.01(2).
Chan entered into the loan agreements with his clients without the
knowledge or approval of Haywood. No fault was attributed to the Member firm.
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