The Investment Dealers Association of Canada announced today that it had fined Henry Cole, the former president and a director of Rampart Securities Inc., $125,000 for his role regarding the chronic, systemic compliance failures at the firm.

It also suspended Cole from any positions with compliance or supervisory responsibilities for 10 years.

At a disciplinary hearing on Jan. 21, 2002, the Ontario District Council found that Rampart Securities Inc. committed sales compliance violations from 1997 through 2001.

On July 23, the council accepted a settlement agreement in which Cole admitted that he failed to carry out his responsibilities to implement and enforce an effective compliance program at Rampart.

As president and a director of Rampart from September 1997 through April 2001, Cole had a responsibility, along with other senior officers and directors of Rampart, to establish policies that met IDA requirements and to take reasonable steps to ensure that Rampart compliance staff and salespeople implemented such policies.

Cole also ought to have been aware of the sales compliance problems for which the Ontario District Council assessed discipline penalties against Rampart by the Ontario District Council on January 21, 2002.

“We require officers and directors at Member firms to exercise their responsibilities to ensure effective supervision and full compliance with association rules and responsibilities,” said Alex Popovic, IDA vice president, enforcement.

Outstanding allegations against Rampart officers and directors Dominic Monardo, Barry Kasman and Nicolas Tsaconakos are to be heard at a disciplinary hearing scheduled to commence on September 17.