BayStreetDirect.com is voting with its feet after the Investment Dealers Association unveiled a sweeping enforcement action against its prospective merger partner, Rampart Securities Inc.

The board of directors of BayStreetDirect met yesterday and have terminated the proposed merger transaction with Rampart’s parent, Rampart Mercantile Inc. Rampart Mercantile announced on June 26 that it had signed a letter of intent to acquire all shares of BayStreetDirect.

Now, BayStreetDirect says, “In light of recent developments affecting Rampart Securities, a wholly owned subsidiary of Rampart Mercantile, the deal no longer appears to be in the best interest of BayStreetDirect shareholders and BayStreetDirect has exercised its termination right and claimed its break fee and expenses.”

Jim Beqaj, BayStreetDirect’s CEO said, “We are disappointed by the most recent events but will continue to explore all the opportunities available to us and in the end decide a course of action that is in the best interest of our shareholders. Our cash position is strong and our expense base is low and while our business has been affected by the general industry’s slowdown, we are continuing to work on a number of engagements.”

In addition, Richard Nesbitt has resigned as president and COO of BayStreetDirect.com Inc. in order to pursue other interests, no replacement has been named.