The British Columbia Securities Commission has reached settlements with three men who breached their “know your client” and gatekeeper obligations while employed as registered representatives at a Vancouver-based investment firm.

Martin Browne, Dominic Busto and Elliot Kagna – all B.C. residents – have agreed to pay the BCSC $50,000 each for misconduct that they engaged in from 1999 to 2001 during their work as registered representatives at Union Securities Ltd. in Vancouver. Busto and Kagna continue to work at Union but Browne left the firm in March 2002 and he is no longer a registered representative.

From 1999 to 2001, the three reps admitted that they each failed to learn essential facts about some clients they dealt with who held U.S. dollar accounts at Union. They failed to learn such facts as the identity, creditworthiness and reputation of these clients contrary to requirements under securities rules. None of these clients or the individuals who gave trading and other instructions on the accounts were residents of Canada. The accounts traded primarily securities listed or quoted on the Over-The-Counter Bulletin Board quotation system in the U.S.

As part of their settlements, Busto and Kagna’s registrations are subject to close supervision for two years and they must successfully complete conduct and practices coursework within six months of the order. In Browne’s case, he cannot apply for registration for at least three years and he too must complete conduct and practices coursework before he can reapply.