(March 22 – 14:30 ET) – Mutual fund dealer W.H. Stuart Mutuals Ltd. has agreed to pay the British Columbia Securities Commission a $25,000 penalty for failing to supervise the activities of its sales staff or keep proper records.
As part of the settlement, W.H. Stuart also agreed to appoint an independent auditor to review compliance procedures at each of its B.C. offices.
W.H. Stuart has been a registered mutual fund dealer in B.C. since 1986. The situation at W.H. Stuart came to light during a BCSC audit of the company’s activities between 1995 and 1999.
According to the commission, the audit revealed four key faailing at W.H. Stuart. These included:
- Failure to maintain complete and accurate records of its business transactions;
- Failure to establish and apply written business procedures for dealing with clients;
- Failure to approve opening of new client accounts; and
- Failure to supervise transactions made for clients.
Last year the Alberta Securities Commission fined W.H. Stuart $150,000 for the sale of limited partnerships in Montebello Egyptian Bloodstock to nine Alberta investors without a registration or a prospectus.