Antony Kin San Chau is officially being thrown out of the industry and must pay a $65,000 fine, after the former dealing representative, who was known to regulators, attempted to sell his firm while still retaining control of it.
To do this, he entered into a share purchase agreement with Aziz Khamisa, and at the same time entered into a “spirit agreement” which purported to give Chau control over all material aspects of the firm after the transaction was complete.
Spirit agreement
The spirit agreement provided that its terms would take priority of the terms of the share purchase agreement. When the time came to disclose the purchase terms to the Mutual Fund Dealer Association of Canada (MFDA), one of the Canadian Investment Regulatory Organization’s (CIRO) predecessor organizations, neither Chau nor Khamisa provided a copy of the spirit agreement or disclosed its terms or existence to the MFDA.
The sanction is at least the second Chau has received as an individual, and the third if sanctions against his firm TeamMax Investment Corp. are taken into consideration.
In addition to the fine and being permanently banned from conducting securities related business with any CIRO member firm, Chau must also pay costs in the amount of $6,000.
Related:
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