The Alberta District Council of the Investment Dealers Association of Canada has imposed penalties on Rogers & Partners Securities Inc. and firm’s CFO, David McKeown.

As part of the settlement agreement, Rogers and McKeown admitted that between February 1998 and November 1999 they failed to obtain the prior written consent of the IDA’s vice president, financial compliance to increase the non- allowable assets of Rogers & Partners, which at the time was in Early Warning level 2.

The respondents also admitted that they failed to disclose to IDA staff the ownership of a seat on the Toronto Stock Exchange. As well, they admitted that Rogers & Partners failed to maintain its risk-adjusted capital at a level greater than zero.

In determining the penalties, the panel took into consideration the lack of evidence to establish that the respondents, in failing to report the acquisition of the TSE seat, deliberately withheld that information or took active steps to conceal it. As well, there was no prior related misconduct by either Rogers & Partners or McKeown, and no client funds were jeopardized.

The firm receives a fine of $25,000, and must pay $2,500 toward the costs of the investigation. McKeown is prohibited from acting as a chief financial 0fficer with any member firm of the IDA for a period of eighteen months.