On May 11, 2012, the Bureau de décision et de révision ratified a joint recommendation of the Autorité des marchés financiers (the AMF) and Botica Capital Management Inc., a mutual fund dealer. Under the recommendation, Botica Capital Management Inc. agrees to pay an administrative penalty of $20,000.
The AMF claimed that Botica Capital Management Inc. breached an undertaking made to the AMF in 2008, inadequately applied the leveraged loan strategy and failed to register a chief compliance officer between September 2010 and September 2011. The AMF also discovered errors in account application forms and an inappropriate composition of client portfolios.
Serge Assayag, as Ultimate Designated Person for Botica Capital Management Inc., has undertaken on behalf of the company to comply with all requirements under the Securities Act.