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IN THE MATTER OF: CHARLES EDWARD DEAR
As An Investment Adviser Agent of
DIASTOLE WEALTH * * * * * * * * * * * * * * * * * * * * * |
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ORDER MODIFYING CONSENT ORDER CONDITIONING REGISTRATION AS AN INVESTMENT ADVISER AGENT File No. CO-02-6436-S |
PRELIMINARY STATEMENT
WHEREAS the Banking Commissioner (the "Commissioner") is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (the "Act") and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies (the "Regulations") promulgated under the Act;
WHEREAS on February 24, 2003, the Commissioner, acting pursuant to Section 36b-15(a) of the Act, entered a Consent Order Conditioning Registration as an Investment Adviser Agent (the "Consent Order") (File No. CO-02-6436-S) with respect to Charles Edward Dear (“Dear”) who was then seeking registration as an investment adviser agent of Diastole Wealth Management, Inc. ("DWM") of 1254 Boston Post Road, Old Saybrook, Connecticut;
WHEREAS the Consent Order, the terms of which are incorporated by reference herein, declared that Dear’s registration as an investment adviser agent of DWM would be made effective subject to certain conditions and restrictions the majority of which would continue in force during Dear’s association with DWM;
WHEREAS paragraph (9) of the Consent Order permitted Dear to apply for relief from any of the provisions of the Consent Order upon a showing of good cause once three years had elapsed from the entry of the Consent Order;
WHEREAS on May 16, 2007, the department received from DWM, acting on its behalf and on behalf of Dear, correspondence dated May 14, 2007 petitioning the Commissioner for relief from certain conditions and restrictions of the Consent Order currently in effect;
WHEREAS Dear has not been the subject of any reported regulatory actions, complaints or arbitrations arising from conduct occurring while he was associated with DWM;
WHEREAS Section 36b-31(a) of the Act provides, in part, that: "The Commissioner may from time to time make, amend and rescind such ... orders as are necessary to carry out the provisions of Sections 36b-2 to 36b-33, inclusive [of the Act]";
WHEREAS Section 36b-31(b) of the Act states, in part, that: "No ... order may be made, amended or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of ... [the Act]";
WHEREAS the Commissioner finds that the issuance of this Order is appropriate in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act;
ORDER
THE COMMISSIONER HEREBY ORDERS THAT:
| (1) | Paragraph 4(a) of the Consent Order, which limited Dear's advisory services on behalf of DWM to specified financial products, is hereby amended to permit Dear to render investment advisory services on insurance and securities products authorized by DWM, subject to the client suitability constraints in Sections 36b-31-15d(a)(3) and 36b-31-15c(a)(1) of the Regulations; |
| (2) | Paragraph 6(b) of the Consent Order, which required, inter alia, that a copy of securities-related communications involving Dear be maintained in a separate on-site communications file, is hereby amended to permit such records to be maintained with those of other DWM advisory personnel; |
| (3) | Paragraph 6(c) of the Consent Order, which required DWM's compliance officer to review all monthly statements relating to accounts serviced by Dear, is hereby amended to permit DWM to conduct such a review on a quarterly rather than a monthly basis; |
| (4) | A copy of this Order shall be mailed forthwith to all parties to the February 24, 2003 Consent Order, to wit, Charles Edward Dear and DW[M]; and |
| (5) | This Order shall become final when issued. |
________/s/_________
Howard F. Pitkin
Banking Commissioner
So ordered at Hartford, Connecticut
this 22nd day of May 2007.