Vancouver investment advisor sanctioned

VANCOUVER, May 27, 2011 /CNW/ - As part of a settlement agreement with the British Columbia Securities Commission, SFCS Capital (Canada) Corp. and one of its directors, Robert John Alexander Stitt, have agreed to pay $5,000 for admittedly failing to maintain an adequate compliance system.

Stitt, a B.C. resident, is registered with the BCSC as an advising representative, director and officer of SFCS, the former investment fund manager for SFCS Titans Limited Partnership (Titans). At all material times, Stitt was the chief compliance officer (CCO) of SFCS.

The agreement states that between January 11 and 15, 2010, SFCS invested funds in Titans on behalf of five B.C. investors. Between July 14 and October 4, 2010, Stitt and SFCS filed five different exempt distribution reports on behalf of these investors relating to their investment in Titans.

On October 15, commission staff conducted a compliance exam at the offices of SFCS and found that Stitt and SFCS had failed to establish and maintain an adequate compliance system. Furthermore, commission staff found that SFCS and Stitt did not obtain complete know-your-client information, and failed to perform a full suitability review for each investor.

Stitt and SFCS cooperated fully with commission staff both during and after the compliance exam. Stitt stopped acting as the CCO of SFCS on April 13, 2011, when the BCSC approved the application of a new qualified CCO for SFCS.

Under the settlement, Stitt also agreed that the executive director will issue an order prohibiting Stitt from acting as CCO or ultimate designated person for a period of 12 months. For the same period, any securities investment advice Stitt gives to retail clients must be reviewed by the CCO of SFCS within 24 hours.  SFCS and its CCO must also file quarterly compliance reports with the BCSC's Director of Capital Markets Regulation.

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 Robert John Alexander Stitt or 2011 BCSECCOM 242 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).

If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

Learn how to protect yourself and become a more informed investor at www.investright.org


SOURCE British Columbia Securities Commission

For further information:

Richard Gilhooley
604-899-6713 or
(Canada) 1-800-373-6393


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