VANCOUVER, April 15 /CNW/ - A British Columbia Securities Commission
panel has upheld disciplinary action taken by the Investment Industry
Regulatory Organization of Canada (IIROC) against Golden Capital Securities
In late 2007 and early 2008, an IIROC hearing panel found that Golden
Capital contravened IIROC bylaws by withholding information reasonably
required for an IIROC investigation. The panel fined the firm $75,000 and
ordered it to pay $76,760 in costs.
Golden Capital asked the commission to set aside the IIROC panel's
decision because, it said, IIROC had not proven that the information it
demanded was reasonably required for the investigation and could include
irrelevant and private information. The firm also said the penalty was unfair.
In confirming the IIROC panel's decision, the commission panel overturned
existing IIROC precedent that IIROC had an obligation to act reasonably in the
initiation and conduct of an investigation. "Its only duty is to act in good
faith," the panel said, noting that "firms and individuals in the business of
trading in securities have an extremely low expectation of privacy over
records and things connected to their business."
The commission panel said the penalty and costs imposed by the IIROC
panel were reasonable and appropriate, observing that it "would have
considered a higher penalty reasonable and appropriate in the circumstances of
IIROC was known as the Investment Dealers Association of Canada at the
time of the Golden Capital decisions.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the decision on our website www.bcsc.bc.ca by typing in the
search box, Golden Capital Securities Ltd. or 2009 BCSECCOM 192. If you have
questions, contact Andrew Poon, media relations, 604-899-6880.
Learn how to avoid investment fraud at the BCSC's investor education
For further information:
For further information: Andrew Poon, (604) 899-6880 or (Canada)