Investment dealer pays $65,000 for contravening cease trade orders
VANCOUVER, May 1, 2013 /CNW/ - As part of a settlement agreement with the British Columbia Securities Commission, Scotia Capital Inc. has paid $65,000 for trading in securities that were subject to cease trade orders (CTOs) and a halt trade order (HTO), on behalf of B.C. clients.
The agreement states that Scotia, which is registered as an investment dealer in B.C., made trades in the securities of 14 companies that were the subject of BCSC CTOs and an HTO between August 2006 and June 2012. Scotia acknowledged that it received timely notification of the CTOs and the HTO via the Canadian Securities Administrators email blast alert.
The issuers' securities traded included:
|Flotek Industries Inc.||ePunk Inc.|
|EYI Industries Inc.||MIV Therapeutics Inc.|
|City Xpress Corp.||Nuvilex Inc.|
|Intelligent Living Corp.||Digagogo Ventures Corp.|
|E-Debit Global Corporation||Americas Energy Company|
|International TME Resources Inc.||Silverado Gold Mines Ltd.|
|Empire Energy Corporation International||Forum National Investments Ltd.|
At various times, Scotia's online retail brokerage division operated through three different entities: Scotia McLeod Direct Investing; Trade Freedom Securities Inc. (which Scotia acquired in 2007); and Scotia iTRADE (previously known as E*TRADE Canada Securities Corporation, which Scotia acquired in 2008). Before Scotia acquired it, E*TRADE reached settlements with the executive director in 2001 and 2008 respecting its breaches of various CTOs.
In the agreement, Scotia conceded that the company (or its predecessor) failed to identify and block execution of the trades in question due to the company's back office conversion, technological error, human error and stock symbols/name changes.
The agreement also notes that Scotia self-reported many of the breaches, and cooperated with commission staff in their review of the company's conduct. Additionally, Scotia represents that it has taken corrective action to prevent similar breaches from occurring in the future.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Scotia Capital Inc, Scotia McLeod Direct Investing, Trade Freedom Securities Inc, Scotia iTRADE, or 2013 BCSECCOM 143 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission