VANCOUVER, Nov. 2 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada (IDA) appointed pursuant to By-law 20 heard a motion for
a stay of a disciplinary hearing brought on September 17 and 18, 2007, by
Global Securities Corporation (Global), an IDA Member firm with its head
office in Vancouver, British Columbia. By written decision released October 1,
2007, the Hearing Panel determined that it did not have jurisdiction to
proceed with the disciplinary hearing and granted Global's motion and ordered
that the disciplinary hearing be stayed.
The IDA had alleged that between March 1999 and February 2001, Global
acted contrary to By-law 29.1, Regulation 1300.2, and/or Policy 2 by failing
to properly supervise the account opening and transactional activities of its
registered representative, Stephen Brook Toban, with respect to as many as 35
accounts for United States resident clients and the deposit and transfer of
cash and shares to and from those accounts.
The Hearing Panel found that the latest of the alleged violations
occurred on February 26, 2001, and that the Notice of Hearing was issued on
May 14, 2007. The Hearing Panel noted that courts have consistently found that
the IDA's jurisdiction is founded on its contract with its Members. The
Hearing Panel went on to find that the IDA's right to discipline is a
contractual right enforced by an action in contract and is therefore, an
"action" as contemplated by section 3(5) of British Columbia's Limitation Act.
The Hearing Panel also found that, in British Columbia, the discoverability
principle does not apply to the limitation period for disciplinary proceedings
brought for alleged violations of the IDA's by-laws, regulations and policies.
The Hearing Panel concluded that because the alleged violations occurred
outside the 6 year limitation period as set out in the Limitation Act, the IDA
was statute-barred from proceeding with the disciplinary hearing.
On October 30, 2007, the IDA requested a hearing and review before the
British Columbia Securities Commission for an order to quash the decision of
the Hearing Panel.
A copy of the Hearing Panel's written reasons is available on the IDA's
The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
For further information:
For further information: Warren Funt, Vice-President, Western Canada,
(604) 331-4750 or email@example.com; Jeff Kehoe, Director, Enforcement Litigation,
(416) 943-6996 or firstname.lastname@example.org