January 03, 2014 12:00 am | Author: investright
In December 2013, the BC
Securities Commission issued two settlements, three notices of hearing, and
announced a Supreme Court of Canada decision upholding a commission panel’s
decision. The Investment Industry Regulatory Organization of Canada (IIROC) released
one settlement in December 2013 relating to a BC resident. The Mutual Fund
Dealers Association did not release any BC-related decisions or settlements during
You can find a summary
of the recent matters below.
Supreme Court of Canada (SCC) dismissed McLean’s appeal of a decision of the
British Columbia Court of Appeal, which upheld a British Columbia Securities
Commission reciprocal order.
In May 2010, the BCSC
issued a reciprocal order mirroring the sanctions McLean agreed to with
the Ontario Securities Commission in 2008. In its decision dismissing McLean’s
appeal, the SCC recognized that modern securities markets transcend provincial
borders, and that inter-jurisdictional cooperation among regulators is
indispensable. The court held that the BCSC’s interpretation of the limitation
period “strikes a reasonable balance between facilitation of interprovincial
cooperation and the underlying purposes of limitation periods.”
admitted that he illegally sold securities in a BC-based company that is now
defunct. Chung raised $400,000 from four individual investors by issuing
promissory notes, offering investors a 20% per year return on their money.
Under the agreement, Chung is banned from the province’s capital markets for
five years. The agreement noted that Chung personally invested over $100,000,
and did not recover any of his investment.
Kocken, Ball and Bralorne admitted to breaching Canadian mining rules. Kocken
and Ball, as directors of Bralorne, admitted to authorizing, permitting, or
acquiescing the company’s s contraventions, thus breaching BC securities laws.
contravened BC securities laws when it filed a technical report with the BCSC
that included information from an economic analysis that it had previously
retracted in a news release, as the analysis did not comply with Canadian
mining rules. The technical report, a corporate presentation, and a fact sheet
referencing the retracted information were also put on the company’s website.
the agreement, Kocken and Ball each agreed to pay $20,000 to the BCSC. They
also agreed to complete a course on the requirements of Canadian mining rules
within one year from the date of the settlement.
IIROC hearing panel settled with Chiu, who admitted that between 2006 and 2010,
he failed to use due diligence to ensure that the orders he placed for a client
were suitable for her. Chiu agreed to a $20,000 fine, disgorgement of $2,000,
and costs of $3,000. He also agreed to a 30-day suspension, a six-month
period of close supervision following completion of the suspension.
Finally, he agreed to complete the Conduct & Practices Handbook course by
September 1, 2014.
Send us your Comments
have comments or changes to suggest, let us know through our comment section.