CALGARY, May 15, 2013 /CNW/ - Provincial Court of Alberta Judge A.A.
Fradsham has ruled that Securities Act (Alberta) provisions that allow the Provincial Court to impose penal
sanctions, including heavy fines and imprisonment, upon those found
guilty of fraud and misrepresentation are within the constitutional
powers of the Province of Alberta.
Three Respondents facing charges in Provincial Court of fraud and
misrepresentation under provisions of the Securities Act (Alberta) challenged the constitutionality of those provisions, arguing
that they are in fact criminal law powers, which are the exclusive
jurisdiction of the federal government.
Judge Fradsham dismissed the application stating: "The Securities Act is
designed to cultivate a fair and efficient capital market in
Alberta...The dominant purpose of [these provisions] is to act as a
deterrent to investors who are tempted to breach the Securities Act.
Deterring would-be offenders serves the Securities Act's main purpose
of ensuring that the securities market is not tainted by actors who are
unwilling to trade or sell securities honestly."
A copy of the decision can be found on the ASC website at www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and
efficient capital market in Alberta and to protect investors. As a
member of the Canadian Securities Administrators, the ASC works to
improve, coordinate and harmonize the regulation of Canada's capital
SOURCE: Alberta Securities Commission
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