Mutual fund dealer, W.H. Stuart Mutuals of Markham, Ontario, has agreed to pay a $25,000 fine to the British Columbia Securities Commission of Vancouver for lack of supervision of the companys sales staff, according to the Commission.
The companys major infractions were a 'failure to maintain complete and accurate records of its business transactions; [a] failure to establish and apply written business procedures for dealing with clients; [a] failure to approve opening of new client accounts; [and a] failure to supervise transactions made for clients,' according to the Commission.
The audit found that, in some instances, company salespeople had not asked clients about their investment needs and objectives and had not examined the suitability of recommended investments as they are required to do, according to Dean Pelkey, a spokesperson for the Commission.
The infractions were discovered during a regularly scheduled audit of the companys activities between 1995 and 1999 conducted by the Commission, according to Pelkey.
Last year, W.H. Stuart was fined $150,000 by the Alberta Securities Commission of Calgary, Alberta for the sale of limited partnerships in Montebello Egyptian Bloodstock Investments to nine investors without a registration or a prospectus, according to the British Columbia Securities Commission.