Mr. Henderson has admitted to
violating Exchange Rule F.1.01 that states in part, every member shall ensure continuous
supervision of account activity in accordance with the provisions of Exchange
requirements.
Penalty Assessed
Pursuant to the terms of the Offer of Settlement,
Mr. Henderson is required to:
- pay a fine in the amount of $5,000;
- successfully complete the Branch Manager’s examination; and,
- successfully complete the Effective Management in the Canadian
Securities Industry seminar offered by the Canadian Securities Institute.
Summary of Facts
On January 27, 1997, the Exchange approved the
application for registration of an investment adviser (the "IA") in DPM’s
Red Deer office. At all material times, Mr. Henderson was the direct supervisor of the IA.
As a condition of Exchange approval, the IA was
required to successfully complete a period of six months close supervision from February
1, 1997, to July 30, 1997 (the "Close Supervision Period"). According to
Exchange requirements, Mr. Henderson was required to closely supervise the IA and to
complete monthly close supervision reports (the "Reports") for the IA throughout
the Close Supervision Period and to retain evidence of such supervisory reviews on file.
On November 27, 1998, at the request of the
Exchange, Mr. Henderson filed the Reports. Mr. Henderson did not complete the Reports
until June 1998, thirteen months after the Close Supervision Period. Further, Mr.
Henderson had backdated the Reports.
In failing to ensure continuous supervision of the
activities and conduct of the IA, Mr. Henderson violated Exchange Rule F.1.01.
No fault was attributed to the Member firm.
