July 14, 2015
The enforcement of securities offences in Canada has been given a boost by a series of measures that include inter-agency collaboration and a whistleblower program. These steps, along with steep fines dealt to companies charged with securities violations in the last five years, signal an increased focus on illicit market activity by securities regulators. In a Lexpert article examining the existing securities enforcement regime, Torys partner John Fabello weighs in on this shift. Below is an excerpt of the article.
Securities commissions are increasingly requiring market participants and gatekeepers to provide another level of policing to their own terrain, says John Fabello, a partner at the Toronto office of Torys LLP.
"The commissions have come out with various initiatives," says Fabello. "One recent example on the heels of Sino-Forest is that they said [the OSC] staff’s expectations of underwriters is that the due diligence they do with respect to issuers bringing securities to market has to be enhanced, doing more than what staff understood underwriters were doing previously."
Regulators are also getting bolder about the kinds of cases they prosecute, he says. "They’re increasingly using this public-interest jurisdiction to say: 'Even if it’s not written and prohibited, or required as in the case of underwriting new standards, we say it’s offside and we’re going to prosecute.'"
To read the full article, click here.
For more of our analysis on Canadian securities enforcement, read our Capital Markets Mid-Year Report 2015 article, "Developments in Insider Trading Enforcement" by John Fabello and Rebecca Wise.