Settlement Agreement Approved for Quadrus Investment Services

Settlement Agreement Approved for Quadrus Investment Services

first_imgThe Nova Scotia Securities Commission has approved a settlement agreement with a mutual fund dealer. Quadrus Investment Services Ltd. violated Nova Scotia securities laws by failing to provide close supervision to its employee, Grant Stuart Rust. The company also failed to establish supervisory procedures that conformed with prudent business practice. In February 2004, terms and conditions were placed on Mr. Rust by the securities commission that required he be kept under close supervision by Quadrus, which agreed to provide that close supervision to monitor Mr. Rust’s activities. The company failed to meet those commitments. Quadrus accepted responsibility for its conduct and was co-operative with commission staff. Since the violation, Quadrus has hired new supervisory personnel, changed its supervisory structure and enhanced its processes for supervision of representatives and the use of leverage. “Effective supervision is the first line of defence in investor protection. The lesson learned in this proceeding is that firms are key players in investor protection and they must be diligent in providing effective supervision.” said Heidi Schedler, enforcement counsel for the Nova Scotia Securities Commission. The commission approved the settlement agreement and ordered Quadrus Investment Services to: comply with Nova Scotia securities laws pay an administrative penalty of $40,000 pay costs in connection with the commission proceedings of $1,000 The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order visit www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp. -30-last_img

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