A history of non-compliance on the part of Global RESP Corp., Global Growth Assets Inc. and their owner, Islam El-Boutique (Sam Bouji), were the major reasons why an Ontario Securities Commission (OSC) hearing panel denied Hanane Bouji’s application to serve as the firms’ ultimate designated person (UDP).

In addition, the OSC hearing panel cited Hanane Bouji’s lack of independence from her father, Sam Bouji, who still works at the firm recruiting salespeople, in its reasons for dismissing the chairwoman’s application, which were published on Wednesday. (The decision was handed down on Sept. 5.)

The history of compliance issues resulted in conditions being placed on Global RESP’s registration and in a 2014 disciplinary settlement that saw Sam Bouji suspended permanently as the firms’ UDP and banned for nine years from acting as an officer or director of a registrant.

Read: OSC rejects Hanane Bouji’s application to serve as Global RESP firms’ UDP

Read: OSC settles with Global RESP and officers

According to the decision, Hanane Bouji argued that her father’s involvement in sales and recruiting activities at Global RESP doesn’t contravene his settlement with the OSC; that there’s no requirement that a new UDP of the firms be independent; and that she is capable of fulfilling the role of UDP for both firms.

Nevertheless, the OSC hearing panel sided with OSC staff, saying that “during the time Ms. Bouji has been chair[woman] of the board for each of the firms, neither she nor the firms took appropriate steps to restrict Mr. Bouji’s activities in order to ensure compliance with the terms of the 2014 settlement. Ms. Bouji had both the obligation and opportunity to do so.”

The failure to curb Sam Bouji’s involvement is “especially troubling, given the firms’ and Mr. Bouji’s record of non-compliance,” the OSC hearing panel states in the decision.

“In these circumstances, Ms. Bouji’s conduct is inconsistent with what is expected from an individual seeking to become a UDP. The proposed amendment to Ms. Bouji’s registration therefore appears to be ‘otherwise objectionable,’ and we refuse the application to amend her registration,” the OSC hearing panel concludes.

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