British Columbia Securities Commission

British Columbia Securities Commission

July 19, 2005 09:30 ET

British Columbia Securities Commission: Broker Breached Securities Rules

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2005) - A Vancouver stockbroker who neglected his "gatekeeper" duties in failing to find out essential information about his client has been placed on close supervision for at least a year as ordered by the British Columbia Securities Commission.

Nelson Kenfung Siu must also pay the BCSC $25,000 as part of a settlement in which he admitted that he also breached securities rules when he allowed the operation of a nominee account without proper documentation and by accepting orders from an individual who was not authorized to trade in that account.

On April 2, 2003, Siu, who works at First Associates Investments Inc., opened a brokerage account for an individual employed by Paula Poe, a former director, senior officer and insider of China Diamond Corp. At the time, Poe was the subject of a BCSC cease-trade order barring her from trading securities of China Diamond. Siu met with Poe, the employee, and various Poe family members at Poe's residence in Vancouver to open the First Associates trading account.

From April 2 to Aug. 26, 2003, China Diamond share certificates representing over one million shares were deposited into the account and later sold into the market. The individual placing the orders with Siu was not the employee and was not properly authorized to trade in the account.

Siu agreed he failed to meet his obligations as a gatekeeper by not making enquiries about the essential facts relating to his client which should have disclosed the employee was not the beneficial owner of the shares and was not operating the account.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website by typing in the search box, Nelson Kenfung Siu or 2005 BCSECCOM 467.

Contact Information

  • British Columbia Securities Commission
    Andrew Poon
    Media Relations
    (604) 899-6880 or (B.C. & Alberta) 1-800-373-6393