The Autorité des marchés financiers reports that the Bureau de décision et de révision en valeurs mobilières has found Groupe Capital Kaufmann Inc. guilty of suffering a capital shortfall.

The AMF says that the firm was found guilty, by the BDRVM, of failing to possess the amount of working capital required by regulation between June 30, 2004 and July 31, 2004. Under securities regulations, a securities adviser with an unrestricted practice is required to posses working capital of least $25,000. “Consequently, the BDRVM ordered Kaufmann to pay a fine in the amount of $2,500,” the AMF says.

It adds that the firm also violated rules requiring firms to enroll in the National Registration Database no later than January 15, 2005. “In its decision, the tribunal stressed the importance for firms to comply with all provisions contained in the NRD Regulation, which is first and foremost intended to enhance the protection of investors’ rights,” the AMF says. “In support of this goal and in light of the objective seriousness of the violation, the tribunal imposed a fine of $3,000 on Kaufmann.”