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) imposed an administrative penalty in the amount of $7,500 against Globevest Capital Inc for failure to comply with certain obligations under the Securities Act (the "Act").
On July 15, 2008, the AMF filed a request with the BDRVM to impose an administrative penalty on Globevest Capital Inc. In the course of an analysis of the financial statements of the unrestricted securities adviser, as at September 30, 2007, the AMF noted that Globevest Capital had extended five loans to individuals although such activity was not part of the information furnished by the firm at the time of registration.
Globevest Capital thus violated section 159 of the Act and section 228 of the Securities Regulation whereby it was required to notify the AMF of any change in the information furnished at the time of registration.
In its decision, the BDRVM took into account the following aggravating circumstances:
- Failure to notify the AMF of the pursuit of a certain activity;
- The importance to the AMF of being notified of any new corporate activities undertake by a registered entity so as to be able to properly accomplish its mission, namely, overseeing all registrants to ensure compliance with laws and regulations.
However, with respect to attenuating circumstances, the BDRVM noted that the respondent acknowledged most of the facts, that it never attempted to conceal or cover them up, that it acknowledged that it was not authorized to extend loans to clients, and that it agreed to the present decision against it as part of an agreement entered into with the AMF.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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