IDA Appeal Panel dismisses case against Credifinance Securities Limited; allows appeal



    TORONTO, Sept. 10 /CNW/ - An Appeal Panel appointed pursuant to IDA
By-law 20 has allowed the appeal of Credifinance Securities Limited
(Credifinance), at all material times a Member of the IDA.
    Following an appeal hearing held on July 3, 2007, an Appeal Panel allowed
Credifinance to appeal a Hearing Panel decision dated October 25, 2006 which
found Credifinance guilty of failing to co-operate with the IDA, namely by
failing to respond within the time requested by IDA investigators to two
written demands dated November 3, 2005 and November 10, 2005.
    With respect to the November 3, 2005 demand, the Appeal Panel found that
new evidence - consisting of transcript excerpts of interviews with three
Credifinance employees - demonstrated that it was understood between the
parties that no answers would be given until the demand was made and the
undertakings given were summarized in a letter which the IDA was to send to
Credifinance. The Appeal Panel determined that Credifinance was not obligated
to provide the information until the demand letter was received. This was
contrary to the finding of the original Hearing Panel that Credifinance had
failed to co-operate by taking no steps to fulfill the undertakings it had
given until after receipt of the letter dated November 3, 2005. The appeal was
therefore allowed.
    Considering the demand of November 10, 2005, the Appeal Panel found that
the Hearing Panel's decision that Credifinance failed to co-operate with the
IDA by virtue of its failure to even try to obtain the backs of certain
cheques from its carrying broker could not stand in light of the fact that the
conduct was not sufficient on its own to make out the charge that on or about
November 2004 to January 2006 Credifinance failed to cooperate with the IDA by
failing to provide information and documents as required by the IDA, contrary
to By-law 19.5.
    For a complete summary of facts, please see IDA Bulletin 3668 at
www.ida.ca or www.accovam.ca.

    The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
role.





For further information:

For further information: Alex Popovic, Vice-President, Enforcement,
(416) 943-6904 or apopovic@ida.ca; Jeff Kehoe, Director, Enforcement
Litigation, (416) 943-6996 or jkehoe@ida.ca

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INVESTMENT DEALERS ASSOCIATION OF CANADA

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