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
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