Settlement Agreement Approved for Mutual Funds Sales Person

The Nova Scotia Securities Commission has approved a settlement agreement with a mutual fund sales person.

Grant Stuart Rust violated Nova Scotia securities laws by failing to deal fairly, honestly and in good faith with his clients. Mr. Rust also failed to establish prudent business procedures for dealing with his clients.

In February 2004, terms and conditions were placed on Mr. Rust by the Securities Commission which required he be kept under close supervision by his employer. In February 2007, Mr. Rust violated those terms and conditions by providing inconsistent information on loan applications. He also advised clients to sign blank documents and to purchase and redeem funds, resulting in clients paying excessive deferred sales charges.

Mr. Rust accepted responsibility for his conduct and was co-operative with commission staff.

"The lesson learned in this proceeding is that not only do advisors need to deal with their clients honestly and in good faith, but investors also need to take charge of their investments and demand full and complete explanations of all potential consequences of their investment decisions." said Heidi Schedler, enforcement counsel for the Nova Scotia Securities Commission.

The commission approved the settlement agreement and ordered Mr. Rust to:

• comply with Nova Scotia securities laws
• pay an administrative penalty of $10,000
• pay costs in connection with the commission proceedings of $1,000

The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order visit www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp.