Administrative penalty of $33,000 against Hampton Securities Limited

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a decision on January 27, 2009 whereby an administrative penalty in the amount of $33,000 was imposed on Hampton Securities Limited for failure to comply with section 158 of the Securities Act (the "Act").

Hampton Securities failed to comply with section 158, which stipulates that the dealer is required, within 90 days after the end of his financial year, to furnish to the AMF the financial statements, the auditor's report, and any other information, in accordance with the requirements prescribed by regulation.

The BDRVM imposed a penalty in the amount of $30,000 on Hampton Securities for failing to furnish to the AMF, for a period of 24 months starting on December 1, 2005, five documents that were required to be filed pursuant to Policy Statement Q-9 – Dealers, Advisers and Representatives ("Policy Statement"), namely:

  • a copy of the financial statements sent to shareholders;
  • the annual joint regulatory financial questionnaire and report;
  • a copy of appendix CO-771.R. 3-V, "Allocation of business made in Québec and outside of Québec" from the Ministry of Revenue of Québec;
  • a list of direct and indirect shareholders who hold a major position, indicating their control and address;
  • a list of the self-regulatory organizations of which the dealer is a member.

Furthermore, the BDRVM imposed a $3,000 penalty because the company also failed to file with the AMF, for a period of 12 months starting on December 1, 2006, the annual joint regulatory financial questionnaire and report in accordance with the Policy Statement.

In its decision, the BDRVM highlighted the importance of statutory filings. It believes that the interests of investors may have been indirectly affected by the AMF's inability to properly protect investors as documents were not furnished in a timely manner.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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