The Ontario Securities Commission has published its reasons for approving settlement agreements in the Yorkton Securities Inc. case. The OSC approved the settlements on December 19, 2001, but today released its decision regarding the settlement agreements between the OSC enforcement staff and Yorkton Securities, Scott Paterson, Roger Dent, Nelson Charles Smith and Alkarim Jivraj.

The three-member panel unanimously approved the settlement agreements reached by staff and the respondents. The panel says that the sanctions are sufficient to satisfy the public interest in the confidence and integrity of the capital markets. “In our view, the orders serve as a strong deterrent to improper conduct on the part of registrants in the capital markets.”

The panel says the orders were issued on the understanding that Yorkton and the respondents have co-operated with staff to arrive at a resolution. “These orders must be seen to restrain future behaviour that may be contrary to the public interest. In this case, the respondents have shown a pattern of conduct that consistently placed their personal interests or their firm’s interests ahead of those of their clients and the investing public.”

Behaviour such as that of the respondents is a paramount regulatory concern, says the panel. “It undermines confidence in the integrity of the capital markets. We are of the opinion that the remedies will deter registrants and all other participants in our capital markets from engaging in conduct which places senior officers and employees of a registrant in positions of conflict with their clients.”