A hearing panel of the Investment Dealers Association of Canada appointed pursuant to by-law 20 has imposed discipline penalties upon the Jitney Group Inc. (Jitney), at all material times a member of the IDA.

On March 12, the hearing panel considered, reviewed, and accepted a settlement agreement negotiated between staff of the IDA’s enforcement department and Jitney. Pursuant to the settlement agreement, Jitney has admitted that between Dec. 31, 2002 and Feb. 25, 2004, it failed to maintain at all times a risk adjusted capital at a level greater than zero, being capital deficient for amounts of up to $1,877,000, in violation of IDA ny-law 17.1.

Further, Jitney admitted that between approximately March 8 and April 28, 2004, it failed to comply, at all times, with a business restriction imposed by the IDA requiring that the member limits the size of its securities owned and sold short positions and capital provided on such positions to $150,000, contrary to by-law 30.6.

For its misconduct, Jitney has been fined $50,000 and must pay $15,000 in costs.