Groupe Capital Kaufmann found guilty
Securities Decisions and Freeze and cease trade orders
Montréal – At the request of the Autorité des marchés financiers (AMF), Groupe Capital Kaufmann Inc. (Kaufmann) was found guilty on January 18, 2006 by the Bureau de décision et de révision en valeurs mobilières (BDRVM) for failing to possess the amount of working capital required by regulation between June 30, 2004 and July 31, 2004. Under section 209 of the Securities Regulation, a securities adviser with an unrestricted practice is required to possess a working capital at least equal to $25,000. Consequently, the BDRVM ordered Kaufmann to pay a fine in the amount of $2,500 pursuant to section 273.1 of the Securities Act.
Moreover, Kaufmann violated sections 3.2 and 6.2 of Regulation 31-102Q respecting the National Registration Database (NRD) whereby firms registered as securities dealers and advisers are required to enrol in NRD no later than January 15, 2005.
In its decision, the tribunal stressed the importance for firms to comply with all provisions contained in the NRD Regulation, which is first and foremost intended to enhance the protection of investors’ rights. In support of this goal and in light of the objective seriousness of the violation, the tribunal imposed a fine of $3,000 on Kaufmann.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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