A TSE panel approved a settlement reached between TSE Regulation Services and Yorkton Securities regarding several trading infractions committed by the investment dealer over a three-year period, beginning in February 1998.

The settlement called for a fine to be charged against Yorkton of $300,000 and attaching all costs, totalling an additional $60,000. The fine amount is determined within TSE’ guidelines, similar cases and the independent assessment of TSE Regulation Services.

Central to the settlement is Yorkton’s concession that it failed to ensure proper compliance standards were in place during the time under investigation. Because it failed to adequately respond to the heightened compliance and business risks raised by certain activities uncovered within the investigation, the investment dealer also breached its supervisory obligations during the period in question.

“Rapid expansion of any investment dealer and the related stresses connected to growth in business volumes will never be accepted as an excuse for failed standards of either compliance or supervision,” said Tom Atkinson, VP of TSE Regulation Services. “The TSE expects every broker dealer to uphold the standards reflected in the Exchange’s General By-Law and the related Rules of the Exchange,” he said. “Failing to do so carries with it the promise of increasingly stringent consequences.”

A proposed settlement agreement between the Canadian Venture Exchange and Piergiorgio Donnini and Yorkton Securities Inc. was also approved today. on June 4, 2001 by a CDNX disciplinary hearing panel.

The complete text of the approved settlement agreement is published on the CDNX home page, at www.cdnx.com, under the ‘Regulatory Information’ site.