VSE: Hauchecorne,
Approved Person Disciplined
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Notice to Members #14/99
Vancouver Stock Exchange: Hauchecorne, Former Approved Person
Disciplined
Following an Exchange Hearing, an Exchange Hearing Panel found that
Jean-Claude Hauchecorne ("Hauchecorne"), an Approved Person employed by the
Member Firm, Pacific International Securities Inc., and at the time of the infractions the
Branch Manager in the Member’s Calgary office, had committed thirteen infractions of
Rule F.1.01 and By-law 5.01(2). Hauchecorne further admitted four infractions of Rule
F.1.02 and By-law 5.01(2). The Panel found that Hauchecorne had not committed four alleged
breaches of Rule F.1.04.
By-law 5.01(2) states, in part, that any conduct, proceeding or method
of business not expressly provided for in the by-laws, rules or regulations which is
unbecoming or inconsistent with just and equitable principles of trade or detrimental to
the interests of the Exchange or the public.
Rule F.1.01 states, in part, that every Member is required to use due
diligence to learn the essential facts relative to every client, every order, every
account carried by him and every person holding paper of attorney over any account carried
by him.
Rule F.1.02 states, in part, that prior to the acceptance of orders
from a third party for an account of any client, there must be a file or written trading
authority signed by the client empowering the third party to enter orders on the account.
Rule F.1.04 states, in part, that no Member shall carry an account
without knowing the identity of the beneficial owner of the account or the parties
responsible for the account.
The Panel found that:
- Hauchecorne had failed to use due diligence to learn the essential facts relating to
eight accounts during the period of April 1995 to August 1996.
- In April, 1996, Hauchecorne effected or facilitated the transfer of more than $1.7
million (US) from two accounts without the knowledge or authority of the owners of the
accounts.
- Hauchecorne discussed confidential information about four accounts with a person who was
not identified as the beneficial owner or a person who was not financially responsible for
these accounts.
- Hauchecorne accepted orders for four accounts without learning the essential facts
relative to the owners and persons placing orders for the account including their
identity, credit worthiness and reputation.
Copies of the Exchange decision may be obtained from the
Exchange’s Corporate Secretary at
689-3334.
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