At a hearing held Tuesday, the Ontario Securities Commission approved a settlement agreement between OSC staff and Swift Trade Inc. and its co-founder and president, Peter Beck.

In August 2006, OSC staff conducted a compliance field review of Swift Trade in order to gain an understanding of the day trading firm’s operations, business model, clients and employees. Beck was then examined under oath by OSC staff on Dec. 11, 2006. During that examination, the OSC says its staff were misled regarding the beneficial ownership and effective control of Swift Trade’s largest client. In a notice of hearing, OSC staff alleged that Beck failed to disclose that a couple of his relatives had an interest in the client.

In the settlement agreement, the Swift Trade and Beck acknowledged that Beck’s conduct was contrary to the public interest and as a director, trading officer, and registrant, and that he should have been completely forthcoming and helpful with his responses. Beck also acknowledged that he should have devoted more effort to developing a better understanding of the subjects of interest to OSC staff during their compliance examination, in order to be completely forthcoming and helpful with his responses.

In approving the settlement agreement, Commission Panel Chair, Lawrence Ritchie said, “it is crucial that market participants, and registered participants in particular, act with the highest of integrity, honesty and frankness in their dealings with OSC staff. Registrants must, at all times, be frank and forthright with OSC staff, and use best efforts to ensure information provided to the OSC is correct and complete.”

The OSC ordered the Swift Trade and Beck to pay costs in the amount of $20,000 and reprimanded Beck.

The OSC also removed the terms and conditions that were imposed on Swift Trade’s registration on Feb. 5, 2008.

IE