The Ontario Securities Commission has withdrawn an enforcement proceeding in respect of Rampart Securities Inc.

The commission first ssued a Notice of Hearing on Aug. 14, 2001. A Temporary Order suspending Rampart’s registration and ordering that Rampart cease trading was issued the same day. The OSC alleged that Rampart had a capital deficiency contrary to section 107 of Ontario Regulation 1015 that required Rampart to maintain adequate capital at all times.

On October 24, 2001, Rampart was petitioned into bankruptcy and Ernst & Young were appointed Trustee.

Since the issuance of the OSC Notice of Hearing, the Investment Dealers Association of Canada disciplined Rampart for violations in the sales compliance, financial compliance and regulatory capital areas.

The IDA terminated Rampart’s rights, privileges and membership in the IDA, imposed a fine of $3 million and ordered Rampart to pay costs of $270,000. Settlements were reached with the principals of Rampart.

As a result of the sanctions imposed by the IDA, Staff of the Enforcement Branch is withdrawing the Notice of Hearing.

http://www.newswire.ca/releases/March2003/17/c1183.html