Regulator activity remains robust despite pandemic

As virtual working conditions persist in Canada and in many parts of the world, in-person enforcement activity from organizations such as Industry Regulatory Organization of Canada continues to be held online.

But despite these interviews and investigations taking place via video conference, lawyer John Fabello has told Investment Executive “regulators’ activity is as vigilant and robust as ever”.

“We on the defence side are seeing as much—if not more—regulatory activity and investigation as ever,” John said.

John also said video conferencing presents a new set of challenges for those involved in the investigations.

“You can’t go outside during a break and talk to your client,” he said.

“Ensuring that you’re preparing more, perhaps, than you otherwise would for the interview is important. Being prepared for interruptions or delays because of the technology is also important.”

John also said that those hoping to hold out for an in-person hearing may find it difficult to get their way.

“As a respondent, you have to prove prejudice or significant prejudice in order to postpone your hearing to a time when it can be done in person,” John said.

“It’s very hard to meet that standard, so the advice I’d give … is: do not expect that you’re going to get out of a hearing or an enforcement case because of COVID.”

You can read more about our securities regulatory practice on the practice page.