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| For Immediate
Release |
00/25 |
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| CONTACT:
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May 15, 2000 |
| Pam
Whitworth |
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| Communications
Director |
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| Canadian Venture
Exchange |
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| Tel: (604) 488-3126 |
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CDNX:
Former Approved Person Disciplined - Grant
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A settlement agreement was entered
into between the Canadian Venture Exchange Inc. (the "Exchange") and David
Robert Grant ("Grant") effective April 26, 2000.
Rules Violated
Grant admitted to violating Alberta Stock Exchange
("ASE") General By-Law section 16.01A, that states in part, that every member
and approved person shall observe high standards of ethics and conduct in the transaction
of their business and shall not engage in any conduct, business, affairs or activity that
is unbecoming, inconsistent with just and equitable principles of trade or detrimental to
the public interest.
Penalty Assessed
Pursuant to the terms of the Offer of Settlement,
Grant is required to:
- pay a fine in the amount of $2,500;
- successfully complete the Branch Managers’ Qualifying course
prior to receiving Exchange Approval in any supervisory capacity; and,
- successfully complete the Conduct and Practices course prior to
receiving Exchange Approval in any registered capacity.
Summary of Facts
Grant was at all material times an approved person
registered and employed as the Branch Manager responsible for the supervision of the
Calgary branch office of Global Securities Corporation (the "Global Office").
On August 15, 1995, the ASE approved the
application for registration of an investment adviser (the "Investment Adviser")
employed at Global’s Office.
On or about May 1, 1998, the Investment Adviser
terminated his employment with Global. The ASE did not receive a Uniform Termination
Notice ("UTN") concerning the Investment Adviser’s termination of
employment immediately as required by section 8.14(a) of the ASE By-law.
On May 26, 1998, a telephone discussion (the
"Telephone Discussion") concerning the Investment Adviser occurred between the
ASE investigator (the "Investigator") and Grant. During the Telephone
Discussion, Grant failed to advise the Investigator that the Investment Adviser was
terminated and no longer worked at Global.
Following the Telephone Discussion, the
Investigator sent a letter (the "Letter") on or about May 26, 1998, to Grant.
The Letter outlined the Investment Adviser’s permissible duties and activities and
cautioned Grant to supervise the Investment Adviser and to ensure that the Investment
Adviser’s activities did not fall outside the scope of his registration. Grant failed
to notify the ASE as a result of receiving the Letter that the Investment Adviser was
terminated.
On January 8, 1999, the ASE became aware that the
Investment Adviser was terminated and requested that the firm file with the ASE a UTN
reflecting the termination. Grant caused an inaccurate UTN to be filed with the ASE.
- In not notifying the ASE prior to January 1999, of the Investment
Adviser’s termination and in causing an inaccurate UTN to be filed with the ASE,
Grant thereby engaged in conduct that was unbecoming and detrimental to the interests of
the public and/or the ASE.
From May 1998, to September 1998, Grant sent letters to the
Investment Adviser’s clients (the "Client Letters"). The Client Letters
stated in part, that "The Investment Adviser has moved to a Corporate Finance
position and will no longer be able to service your account", when Grant knew that
the Investment Adviser was no longer employed at Global.
In failing to ensure the accuracy of the Client
Letters, Grant thereby engaged in conduct that was unbecoming and detrimental to the
interests of the public and/or the ASE.
Grant thereby violated ASE General By-Law section
16.01A.
For more information, please visit the
Exchange’s website at www.cdnx.com.
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