The Ontario District Council of the Investment Dealers Association of Canada has fined Brant Securities Ltd. and three officers of the firm for failing to comply with IDA rules.

On April 27, the District Council accepted a settlement agreement in which Brant admitted that it:

  • engaged in conduct unbecoming by failing to respond in a timely manner to IDA concerns regarding an effective sales compliance program;
  • failed to maintain adequate supervisory procedures in accordance with IDA Policy 2;
  • failed to use due diligence to learn the essential facts relative to certain clients and orders or accounts accepted, and to ensure that such orders or accounts were within the bounds of good business practice; and
  • failed to ascertain the identities of clients and investigate trading activity.

Pursuant to the same settlement agreement, the three officers, Keith McMeekin, Hugh Jackson Jr. and John Davies admitted that they failed to carry out their duties and responsibilities to ensure Brant was in compliance with IDA requirements.

In addition, McMeekin and Jackson admitted that they:

  • failed to carry out their duties and responsibilities to ensure that Brant fulfilled representations provided to the IDA to put into place and implement procedures to ensure compliance with Association requirements; and
  • engaged in conduct unbecoming by failing to ascertain the identities of clients and investigate trading activity.

The IDA fined the respondents at total of $220,000. Brant must pay $125,000. McMeekin and Jackson were ordered to pay $35,000 each, and Davies must pay $25,000.

In addition, Brant must pay $60,000 in costs.

For a complete summary of facts, please see IDA Bulletin 3284.