Friday, May 24, 2024

CIRO issues bans, $105K in fines relating to investment firm sale agreement


This second agreement gave Chau control of the firm’s Advisors Network, veto over any further sale of the firm’s shares, and bank account signing authority. The regulator said this agreement gave Chau control of material aspects of TeamMax’s operation and business.

In its investigation, during interviews with Khamisa he revealed that the Spirit Agreement had been drafted by Chau and benefitted him exclusively. It also emerged that Chau had told Khamisa not to tell the MFDA about the agreement.

Regulator action

This week Chau was given a $60,000 fine and a permanent ban from conducting securities related business while in the employ of or associated with any Dealer Member of CIRO registered as a mutual fund dealer. He is also required to pay $6,000 in costs.

Last month Khamisa had a $40,000 fine issued to him by a CIRO hearing panel and a one year prohibition on his authority to conduct security related business while in the employ of or associated with any Dealer Member of CIRO that is registered as a mutual fund dealer; and a five year ban on being an officer, director or acting in a supervisory capacity including without limitation acting as Ultimate Designated Person, Chief Compliance Officer, Branch Manager or Compliance Officer, while in the employ of or associated with any Dealer Member of CIRO registered as a mutual fund dealer.

TeamMax was found in violation of rules regarding compliance oversight in March 2023, resulting in the firm receiving a $60,000 fine and being required to pay $10,000 in costs.



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