A Hearing Panel of the Investment Dealers Association of Canada has fined Resolution Capital Inc., whose membership privileges are currently suspended, and two of its officers for failing to pay membership fees.

Gaston English, at all material times the President, Chief Executive Officer, Director, Secretary, Sales Manager and Ultimate Designated Person of RCI; and Eric English, at all material times the Senior Vice-President, Director, Chief Compliance Officer, Alternate Designated Person, Branch Manager and Chief Financial Officer of RCI.

On Aug. 31, 2005 the hearing panel concluded that Resolution:

  • neglected or refused to pay its annual membership fees for fiscal years 2003-2004 and 2004-2005;
  • neglected or refusedto pay a late filing fee in respect to its 2004 Joint Regulatory Financial Questionnaire and Report;
  • neglected or refused to pay its allocated portion offees for the District Association Auditor;
  • refused to acknowledge that it had been designated in Early Warning Level 2 and refused to comply with terms and conditions of the warning; failed to maintain a positive Risk Adjusted Capital from or about Octl 31, 2004 to the present; and
  • refused to apply Canadian Generally Accepted Accounting Principles in the preparation of its financial books and records since at least May 2003.

In respect to Gaston English, Resolution’s president and CEO, and Eric English, the firm’s CFO and chief compliance officer, the IDA panel found that since at least February 2003 to the present, they have failed to discharge their duties in a prudent and reasonable manner.

For their misconduct, the IDA fined Resolution $51,729.83.

The panel permanently banned Gaston English is from approval to act in any registered capacity with any IDA firm, and suspended Eric English is from approval by the IDA for a period of three years.

In determining the penalties, the panel took into consideration that the respondents have not benefited financially from the infractions they have committed, except for the non-payment of the sums legally owed to the IDA since their due date.


Following an expedited hearing on April 13, 2005, the hearing panel ordered the immediate suspension of Resolution’s membership, since it was no longer registered as a dealer with the Autorité des marchés financiers.

For a complete summary of facts, please see IDA Bulletin 3514.