A hearing panel of the Investment Dealers Association of Canada has fined Peak Securities Inc. for failing to properly maintain its risk adjusted capital.

Following a settlement hearing on July 11, 2007, the panel examined a settlement agreement negotiated between IDA staff and Peak. Based on its decision rendered on July 18, the panel decided to accept the settlement agreement.

Under the terms of the agreement, Peak 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; 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.

After a subsequent examination in 2005, staff of the IDA determined that Peak 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 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.