Hartley T. Richardson

Hartley T. Richardson Council of Orthodox Rabbis label on CANOLA HARVEST products Hartley T. Richardson Council of Orthodox Rabbis label on CANOLA HARVEST products
Council of Orthodox Rabbis label on CANOLA HARVEST products Hartley T. Richardson Council of Orthodox Rabbis label on CANOLA HARVEST products Hartley T. Richardson

Letters to Hartley T. Richardson

01-Jul-2003  CANOLA HARVEST trade mark infringement

Background Information on Hartley T. Richardson

Hartley T. Richardson, 48, of Winnipeg, Manitoba, has served on the board of the Bank since November 5, 1996.  Mr. Richardson is President and Chief Executive Officer and a director of James Richardson & Sons, Limited (an investment and holding company) and a director or officer of a number of subsidiaries of James Richardson & Sons, Limited.  He is also a director of Angiotech Pharmaceuticals, Inc., DuPont Canada Inc., MacDonald Dettwiler and Associates, Asia Pacific Foundation of Canada, Canadian Council of Chief Executives and the Trilateral Commission.
Royal Bank of Canada, Information for Shareholders, Notice of Annual Meeting, 28-Feb-2003, downloaded on 01-Jul-2003, www.sedar.com/csfsprod/data35/filings/00509909/00000001/g:%5CUSERS%5CSedar%5CWrite%5CRoyal%5CAnnual%5CcircEN.pdf

Hartley Richardson is the President and CEO of James Richardson & Sons, Limited, a leading Canadian private company established in 1857.  The company is actively involved in agriculture, oil and gas, real estate, and investment.  Mr. Richardson is also a Director of Dupont Canada Inc., The Royal Bank of Canada, Richland Petroleum Corporation, Asia Pacific Foundation, Business Council on National Issues, and is active in several other companies and associations. James Richardson & Sons, Limited and affiliated companies is the parent of many diverse, progressive enterprises within growing and fundamental industries.  Employing more than 3500 people in Canada, the United States, the United Kingdom and beyond, the James Richardson family of companies continues to foster new ideas and ways of improving the times in which we live.
InvestorFile.com, downloaded 01-Jul-2003, www.investorfile.com/p/Hartley_Richardson.asp?symbol=p


JRI is the largest subsidiary of James Richardson & Sons, Limited, a privately owned corporation that has been family controlled for five generations.  For nearly 150 years, the Richardson name has been synonymous with the international grain industry.

Today, JRI’s agrifood operations extend from coast to coast and beyond, positioning JRI as one of Canada’s leading agribusinesses.  With a world of expertise in merchandising, logistics and market planning, JRI offers growers a proven link to the dynamic world of grain marketing.  From seed to sea, JRI can provide the resources that producers need to grow and thrive in today’s demanding marketplace.
James Richardson International (JRI) Corporate History page downloaded on 01-Jul-2003 from www.jri.ca/history.html


"Our goal is to be the kind of business organization
in which people can place their trust."
James Richardson, 1857

These words, first spoken by our founder, James Richardson in 1857, have been repeated by every president of the company since then.  In them is the root of JRI’s promise to earn the trust of every customer, every day.

That trust is built on the honesty and integrity with which we approach every aspect of our business relationships.  It is also built on a consistent record of insightful planning and an innovative approach to meeting the unique requirements of every JRI customer.
James Richardson International (JRI) Operating Philosophy page downloaded on 01-Jul-2003 from www.jri.ca/philosophy.html

Geoff Kirbyson

Portfolio: Hartley Richardson

Investing strategies of the best in business

It's safe to say Hartley Richardson's family is uniquely qualified for its latest business venture.  The president and CEO of James Richardson & Sons Ltd., the Winnipeg-based company run by the city's wealthiest family, is preparing to re-enter the investment management business seven years after selling Richardson Greenshields to the Royal Bank for $480 million.  The new venture: an eight-office boutique catering to high-net-worth individuals with complicated financial needs.  "It's a growing business," he says from the expansive 30th-floor offices of the Richardson Building at Winnipeg's Portage and Main intersection.  "It's where you want to be in financial services.  Just look at the demographics."

He realizes many may question the family's $50-million investment in the new business.  There are countless firms targeting high-net-worth investors — and their fat commissions — as the three-year-old bear market shows little sign of letting up.  But he's confident the firm, which will be called Richardson Partners Financial Ltd. when it launches in late fall, will successfully tap the lucrative segment of rich Canadians.  "We have been dealing with insurance, tax, estate and philanthropy issues for our family (for years)," he says.

While Richardson won't act in an investment adviser capacity, he will take part in speaking engagements and group seminars.  The reputation that comes with the Richardson name is expected to help set the firm apart from rivals.  In addition, all investment advisers and management at the firm will be shareholders in the company.  Ultimately it could have as many as 120 high-end brokers offering a full range of financial services through offices across the country.

Richardson has rallied an impressive roster of executives for the task.  The chairman of the new venture is Sandy Riley, the former president and CEO of Winnipeg-based Investors Group Inc., while Mike Miller, another Investors Group veteran, will be CEO.  The chief operating officer will be Sue Dabarno, former president and chief operating officer of Merrill Lynch Canada Inc.

The Richardsons, of course, are no strangers to financial services.  They continue to own a significant stake in Royal Bank.  In late May, Hartley Richardson stepped down from the bank's board to avoid any appearance of conflict of interest.  But he is adamant the family is not trying to re-create Richardson Greenshields, the 70-office independent brokerage.  Still, Paul Bates, a Toronto-based industry consultant and former head of Charles Schwab Canada, says the family's history in the sector bodes well for the firm's future.  "They were a well-respected company," he says.  "They treated their employees well, and they enjoyed good positioning in the marketplace."

A second, less-talked-about initiative is to spend another $50 million, along with other institutional and third-party investors, to create a $250-million private equity fund.  The fund will focus on investments ranging from $10 million to $50 million in alternative energy, conventional energy and infrastructure, medical devices and biotechnology.  In fact, private equity investments, their investment in the Royal Bank, along with the new Richardson Partners firm, account for more than one-third of the family's assets, estimated at $1.15 billion in the Canadian Business Rich 100 issue.  The rest of the family's portfolio is a diverse mix of interests in oil and gas (25%), agriculture (25%) and real estate (15%), with a deal in the works to buy into "a major portfolio of commercial properties" across Canada.  "As with our other interests within our portfolio, we look for niche opportunities," he says.  "We want to be No. 1 or 2 in these niche markets."
Canadian Business, 23-Jun-2003. downloaded on 01-Jul-2003 from

In April, 1997, Richardson Greenshields "and two former employees were assessed fines and investigation costs totalling $395,000 for unauthorized trading schemes."  John Hiltz, a former broker at Richardson Greensields' Courtenay office on Vancouver Island, "requisitioned nine cheques totalling $116,000 from four client accounts in 1995, [...] then intercepted the cheques, fraudulently endorsed them and deposited the money in his personal account.  He deposited personal cheques in 16 client accounts to offset losses caused by his unauthorized trading."  "The [Vancouver Stock Exchange] said Richardson knew Mr. Hiltz was depositing his personal cheques into client accounts, but ignored the practice, which should have alerted the brokerage firm to his scheme" (Globe and Mail, April 3, 1997, p. B9).
The Corporate Web downloaded 06-Jul-2003 from webhome.idirect.com/~rouleau/rcorp.htm.  Blue font added.

Discipline Penalties Imposed on Christine Sklar - Violation of By-law 29.1

The Alberta District Council of the Investment Dealers Association of Canada (the “Association”) has imposed discipline penalties on Christine Sklar, at all material times a registered representative with Richardson Greenshields of Canada Limited, subsequently RBC Dominion Securities Ltd., a Member of the Association.

On August 29, 2001 the Alberta District Council issued their Reasons for Decision regarding disciplinary proceedings initiated by Association staff against Ms. Sklar.  The District Council found that Ms. Sklar engaged in conduct unbecoming of a registered representative, contrary to Association By-law 29.1.

The discipline penalty assessed against Ms. Sklar is a fine in the amount of $2,500.00, and a condition that she successfully rewrite the Conduct and Practices Handbook examination administered by the Canadian Securities Institute.  Ms. Sklar is required to pay the Association’s costs of investigation in the amount of $1,000.00.  The District Council also ordered that Ms. Sklar not be re-registered by the Association until such time as the fine and costs are paid in full.

In June 1998 a client opened a cash account at the Sherwood Park sub-branch office of the Edmonton, Oxford branch of Richardson Greenshields of Canada Limited.  At all material times Ms. Sklar was the registered representative of record for the account.  At the time of opening the cash account the client signed a Cash Account Agreement.  On October 26, 1998, the Branch Manager of Edmonton, Oxford received a phone call from the client stating that the signature which appeared on the Cash Account Agreement and purported to be the clients, had in fact been forged.  The Branch Manager subsequently questioned Ms. Sklar who admitted that she had got “frustrated” with trying to contact the client and had forged the clients signature on a new Cash Account Agreement after the original document signed by the client had been lost or misplaced.  The panel of the District Council determined that this constituted conduct unbecoming of a registered representative.

In determining an appropriate penalty the panel of the District Council considered several factors.  Ms. Sklar did not profit in any manner from the forgery.  The document had previously been signed by the client, but had been lost.  The application of the signature was to a duplicate copy, done to avoid having to obtain a second signature, and the embarrassment of having to admit to the client that the first document was lost.  Ms. Sklar admitted the offence to the branch manager, and did not contest the proceedings.

The panel of the District Council found an allegation of discretionary trading not sustained by the evidence.  Ms. Sklar did not appear at the hearing.  She left the employ of RBC Dominion Securities Inc. on October 27, 1998 and has not been registered in any capacity with the Association since that date.  She has no previous history of regulatory violations.
INVESTMENT DEALERS ASSOCIATION OF CANADA BULLETIN, 02-Oct-2001, downloaded 06-Jul-2003 from www.ida.ca/Files/Regulation/Bulletins/B2889_en.pdf.  Blue font added.

25 June 2002
Bulletin No. 3015



I. Introduction

  1. The staff (“Staff”) of the Investment Dealers Association of Canada (“the Association”) has conducted an investigation (the “Investigation”) into the conduct of Peter Michael Smith (“the Respondent”).  The Investigation concerning the Respondent was initiated when a complaint regarding the Respondent’s conduct was made.

  2. In a letter dated January 9, 1995, LQ (“LQ”) lodged a complaint with The Toronto Stock Exchange (the “TSE”) concerning the handling of her accounts by the Respondent.  LQ alleged that between 1988 and 1994 Smith had mismanaged her accounts in that at one time she had more than $100,000 in equity and, at the time of complaint, she had approximately $30,000.


III. Statement of Facts


    B. Background Facts

  1. The Respondent has been in the securities industry since 1985.  From 1985 until August 1988, the Respondent was employed by Walwyn Stodgell Cochran Murray (“Walwyn”) as a Registered Representative.  He then transferred to Davidson Partners Limited upon its merger with Midland Doherty.  On October 6, 1989, the Respondent left the employment of Midland Doherty and began employment with McNeil Mantha Inc.(“McNeil”) in January 1990.  In March 1991, the Respondent accepted a position with Richardson Greenshields of Canada (“Richardson”) where he remained until December 1994.

  2. The Respondent is currently employed by Canaccord Capital Corp. (“Canaccord”) where he has remained since November 1995.

    C. The Q Accounts

  3. At the time of the opening of the first account relevant to this agreement in January 1988, LQ was a forty-two year old single woman with no children.  Her sole source of income was her approximate salary of $35,000 as an investigator with the Ontario Ministry of Consumer and Commercial Relations.  In January 1988, LQ’s investment experience consisted of the acquisition of two GICs for her RRSP and she had no investment related education and limited knowledge about equity securities.

  4. In January 1988, LQ’s stepfather passed away and she inherited securities held in two accounts at Walwyn having a combined value of $90,375.86.  Pursuant to the terms of her stepfather’s will, approximately $30,000 was transferred out of the account in April 1988.  In August 1988, the remaining balance of $58,824.08 was transferred to accounts at Walwyn maintained by LQ in her personal capacity.  In February 1989 (following the Respondent’s transfer to Midland), LQ contributed Noranda Inc. and Canadian Pacific Limited shares that she had inherited from her natural father to the accounts.  At the time, these securities had an aggregate market value of $34,346.25.  In January 1990, LQ deposited a further $15,000 to the accounts (then at McNeil).

  5. The Respondent served as LQ’s stepfather’s investment adviser in connection with his accounts at Walwyn.  LQ’s stepfather’s accounts with the Respondent had been margin accounts invested in part in the equity securities of small or medium-sized issuers.  The investment profile of the account remained the same throughout the period that the Respondent managed the account.  The majority of the trades in the account were solicited.

  6. Because LQ’s stepfather had maintained margin accounts with the Respondent, the Respondent opened a margin account on behalf of LQ although she did not request one.  LQ maintains that the Respondent did not explain the risks of investing on margin.  The Respondent maintains that he did explain margin to LQ.  The Respondent does acknowledge that, in any event, he ought to have been more patient with her as a novice investor who had recently inherited an actively traded account and taken more care to ensure that his recommendations respecting margin were understood and appropriate.  LQ later advised the Respondent on several occasions that she was uncomfortable with the level of margin in the accounts.  As a result, the Respondent sought to reduce LQ’s margin exposure.

  7. LQ’s accounts were appropriately invested in terms of suitability from January 1988 to February 1993.  Following February 1993, as the Respondent sought to reduce the margin in the account through the sale of securities, the level of risk increased by virtue of the profile of the securities remaining in the accounts.

  8. Subsequently, LQ transferred the assets in her accounts to an investment advisor at Nesbitt Burns Inc.  Unlike the Respondent, the Nesbitt Burns representative was better able to discuss her objectives and reoriented LQ’s investment strategy to a more conservative approach.

IV. Contraventions

  1. During the period from May 1990 to June 1992, the Respondent, at all times employed with a Member of the Association failed to ensure that the acceptance of orders for the account of LQ were within the bounds of good business practice contrary to Regulation 1300.1(b).

V. Admission of Contravention and Future Compliance

  1. The Respondent admits the contravention of the Regulations of the Association noted in Section IV of this Settlement Agreement.  In the future, the Respondent shall comply with these and all By-laws, Regulations, Rulings and Policies of the Association.

Investment Dealers Association of Canada, downloaded 06-Jul-2003 from www.ida.ca/Files/Enforcement/SettlementAgreements/SA200207080_en.pdf.  Blue font added.