Vancouver Stock
Exchange: Voelpel, Approved Person Disciplined
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Notice to Members #62/99
By way of an Offer of Settlement, Stephen Alexander Voelpel ("Voelpel") an
Approved Person employed by Global Securities Corporation ("Global"), has agreed
to the imposition of the following penalties by the Exchange for violation of Exchange
By-Law 5.01(2) and Exchange Rules F.1.02 (2) and F.2.22 (2):
- payment of a fine in the amount of $10,000;
- disgorgement of commissions in the amount of $375;
- withdrawal of Exchange approval for a period of 30 days, and
- an assessment of investigative costs in the amount of $2,000.
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.
Rule F.1.02(2) states in part, that every member shall, prior to accepting orders from
a third party for the account, have on file a trading authority signed by the client
empowering the third party to enter orders on the account.
Rule F.2.22.2 states in part, that an investment adviser shall not, subject to Rule
F.3.04, handle a discretionary order or exercise any discretion in the handling of an
account of a client of a member.
Between July 2, 1996 and July 11, 1996, Voelpel accepted orders from a third party (the
"Third Party") to execute 7 trades in 5 Exchange listed companies valued at
approximately $50,917 (the "Third Party Trades") on a client account (the
"Client"). The Third Party Trades were executed without the Client's knowledge
or authorization and without having on file, the required written trading authorization
permitting the Third Party to trade the Client's account.
Voelpel thereby violated Exchange By-Law 5.01(2) and Exchange Rule F.1.02(2).
Further, between July 11, 1996 and September 30, 1996, Voelpel exercised discretion in
the Client's account executing 16 trades in 5 Exchange listed companies valued at
approximately $37,780 (the "Discretionary Trades"). Voelpel had not received the
Client's authorization to exercise discretion over the account and Global had not accepted
the Client account as discretionary.
Voelpel thereby violated Exchange Rule F.2.22(2).
No fault was attributed to the Member Firm.
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