CALGARY, Sept. 13 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada, appointed pursuant to By-law 20, has found Vance Elder,
at all material times an Approved Person with the Glenmore Landing and Esso
Plaza branch offices of BMO Nesbitt Burns (Nesbitt) in Calgary, an IDA Member
firm, guilty of violating By-law 29.1 and Regulation 1300.1(a).
In its liability decision dated February 15, 2007, the Hearing Panel
found that, during the period of November 1996 to June 2001, Mr. Elder knew or
was willfully blind to the fact that his administrative assistant was signing
client signatures as well as Mr. Elder's signature on client account
documentation, contrary to By-law 29.1. The Panel concluded that Mr. Elder had
not directed his assistant to forge clients' or his signature. Also, evidence
was accepted that the forgeries committed by his assistant were done for the
purpose of completing account documentation efficiently, not with a view to
causing harm to clients or directly creating profit for Mr. Elder.
The Panel also found that Mr. Elder knew that his assistant was providing
investment advice to his clients, contrary to Regulation 1300.1(a) and By-law
29.1. The Panel found that the evidence did not support a fourth allegation
that Mr. Elder engaged in the forgery of clients' signatures to account
In determining penalty, the Hearing Panel considered that no client had
complained or been harmed by the conduct, Mr. Elder had no prior disciplinary
history, and Nesbitt confirmed that there were no written client complaints
against Mr. Elder resulting in client settlements.
Following the Panel's statement that penalty should be based on "remedial
rather than punitive objectives" Mr. Elder has been fined $100,000; must pay
$15,000 in costs; is required to rewrite the exam based on the Conduct and
Practices Handbook within six months of the penalty assessment; and must
accumulate an extra 25 continuing education credits over a two year period. He
has also been assessed 12 months of close supervision and has had his "Senior
Vice-President" designation revoked for a period of two years.
Mr. Elder continues to be employed with the Esso Plaza branch office of
BMO Nesbitt Burns in Calgary.
For a complete summary of facts, please see IDA Bulletin 3671 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
For further information:
For further information: Warren Funt, Vice-President, Western Canada,
(604) 331-4750 or firstname.lastname@example.org; Jeff Kehoe, Director, Enforcement Litigation,
(416) 943-6996 or email@example.com