MONTREAL, Aug. 15 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada, appointed pursuant to By-law 20, has imposed discipline
penalties upon PEAK Securities Inc., a Member of the IDA.
Following a settlement hearing on July 11, 2007, the Hearing Panel
examined a Settlement Agreement negotiated between Staff of the IDA and PEAK
Securities Inc. Based on its decision rendered on July 18, 2007, the Hearing
Panel decided to accept the Settlement Agreement.
Under the terms of the Settlement Agreement, PEAK Securities Inc.
admitted that on July 15, 2004, it failed to maintain its Risk Adjusted
Capital at a level greater than zero, and thus found itself in a capital
deficiency position for the amount of $59,000, contrary to By-law 17.1; and in
July 2004, it had not finished implementing control measures relative to
activities that have an impact on Risk Adjusted Capital--although it was
completed subsequently--contrary to By-law 17.2A.
After a subsequent examination in 2005, staff of the IDA determined that
PEAK Securities Inc. had taken the necessary steps and satisfactorily
implemented a procedure to maintain its Risk Adjusted Capital at a level
greater than zero and showed very good cooperation in resolving this matter
quickly. As a result, PEAK Securities Inc. did not incur any financial risk
that might result from this short-term capital deficiency, and no client
incurred any financial loss.
For its misconduct, Peak Securities Inc. must pay a fine of $30,000 and
$15,000 in costs.
For a complete summary of facts, please see IDA Bulletin 3660 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: Carmen Crépin, Vice-President, Québec, (514)
878-2854, or firstname.lastname@example.org; Jeffrey Kehoe, Director, Enforcement Litigation,
(416) 943-6996 or email@example.com