From the Regulators

Panel finds four instances of inadequate supervision

By IE Staff |

A hearing panel of the Investment Dealers Association of Canada has sanctioned a Vancouver man for failing to adequately supervise options trading activities.

Following a disciplinary hearing held on Sept. 10-13, 2007 and Sept. 18-21, 2007 in Calgary, the panel found that Peter Deruyter Van Hee, as the Designated Registered Options Principal of Union Securities Ltd., failed to adequately supervise the account management and trading activities and maintain adequate supervision records in four separate cases relating to:

1) two client accounts of the Registered Options Representative, E. L., an employee of Union in Calgary, during the period October 2002 to March 2003;

2) all or any of, 12 client accounts of the Registered Options Representative, S.B., an employee of Union in Regina, during the period 2002 to 2003;

3) one client of the Registered Options Representative, J.E., an employee of Union in Calgary, during the period April 2001 to Aug. 2003; and

4) one client account of the Registered Options Representative, R.L., an employee of Union in Moncton, N.B., during the period Sept. 2001 to May 2003.

The panel found that the IDA did not prove its case in relation to a separate case relating to one client account of the Registered Options Representative, T.P., an employee of Union in Toronto, during the period Sept. 2001 to Feb. 2003.

The panel issued its decision and reasons on Dec. 2, 2008. A separate hearing will be held to determine the penalty to be imposed on Van Hee.

The IDA formally initiated the investigation into Van Hee’s conduct on Oct. 14, 2004. The violations occurred when he was the Designated Registered Options Principal with the Vancouver, head office of branch of Union Securities Ltd.

Van Hee is still registered within the industry with Union, an IIROC regulated firm.

IE