The Ontario District Council of the Investment Dealers Association of Canada has decided that the charge brought against Pierre Gloutney was not sustained.

On August 26, 2003, a discipline hearing was held before the District Council in relation to an allegation that Gloutney, president and director of Refco Futures (Canada) Ltd., failed to exercise due diligence when approving a corporate account of Mark Valentine, who was at the time subject to a temporary cease trade order issued by the Ontario Securities Commission.

The facts of this case were not in dispute and were presented to the District Council by way of an agreed statement of facts. The only issue for the District Council was whether or not the facts constituted a regulatory violation.

In its written decision dated September 18, 2003, the District Council found that the charge had not been made out and dismissed the case.

While the Council acknowledged that Gloutney’s awareness of the trading ban should at least have prompted him to ask some questions, they were not prepared to conclude that his conduct was in violation of any Association rules or by-laws. In arriving at its decision, the District Council stated, “The line is thin, and where there is doubt, he is entitled to benefit.”

For a complete summary of facts, please see IDA Bulletin No. 3195 at www.ida.ca.