Disciplinary Proceedings: In the Matter of David William Trim (“Trim”) (October 30, 2002) OOS 2002-005
Facts – On January 16, 2001, Trim, a trader employed by BMO Nesbitt Burns Inc. (“BMO”), entered into a trade for shares of a company at a price in excess of the maximum permitted stabilization price during a restricted period which the security was subject to. In a separate transaction, on September 6, 2001, Trim, entered into a trade to cover an outstanding short position in a security that, at the time of the trade, was on BMO’s restricted list. Trim was advised by BMO’s Corporate Compliance Department that he could cover his outstanding short position so long as the bid or purchase price was not higher than the maximum permitted stabilization price, in this case $4.50. Trim subsequently entered into a trade for the shares at $4.54.
Disposition – Trim executed prohibited trades in two securities at a time when BMO was involved in a distribution of these securities and had restricted trading of the securities.
Requirements Considered – TSX Rules 7-106(b) and 4-303. Comparable UMIR Provision - Rule 7.7
Sanction - $10,000 fine and costs of $3,500
Disciplinary Proceedings: Rule 7.7(5) (pre-May 2005 version) was considered In the Matter of Scotia Capital Inc. (“Scotia”) (February 26, 2007) DN 2007-001. See Disciplinary Proceedings under Rule 6.4.
Disciplinary Proceedings: In the Matter of Global Securities Corporation (“Global”) (December 3, 2007) DN 2007-005
Facts – Between October 6, 2005, and November 16, 2005, Global, while acting as an underwriter for a private placement of securities for Jasper Mining Corporation (“Jasper”), entered twenty-five orders to buy shares of Jasper (resulting in forty-three trades) for non-client, inventory and client accounts (on a solicited or discretionary basis).
Disposition – Subject to certain exemptions, UMIR imposes trading restrictions on a dealer with an interest in the outcome of the distribution of securities or other transactions (“Dealer-Restricted Person”). During the relevant period, Global was a Dealer-Restricted Person, and as such, was prohibited from bidding for or purchasing shares of Jasper for its own account, for an account over which Global exercised direction or control or soliciting the purchase of shares of Jasper. By purchasing shares of Jasper for non-client, inventory and client accounts over which Global had discretion or solicited such purchase, Global did harm to the reputation of the marketplace and the public’s perception of the capital markets.
Requirements Considered – Rule 7.7
Sanction – $65,000 fine and costs of $25,000
Disciplinary Proceedings: Rule 7.7(5) [as it existed prior to May, 2005] was considered In the Matter of David Berry (“Berry”) (January 17, 2013) DN 13-0018. See Disciplinary Proceeding under Rule 6.4.