IDA Hearing Panel dismisses motion filed by Louis-Philippe Séguin

    MONTREAL, Oct. 2 /CNW/ - A Hearing Panel appointed pursuant to IDA By-law
20 has dismissed a motion filed by Louis-Philippe Séguin who was, until his
resignation on December 30, 2005, a Registered Representative for Jones,
Gable & Company Limited, a Member firm of the IDA.
    Mr. Séguin based his motion on a Notice of Hearing published on March 21,
2007 which contained allegations that he violated By-law 19.5 by refusing to
attend and give information before the persons conducting the investigation on
or about March 22, 2006. In his motion, Mr. Séguin asked the Hearing Panel to
conclude that By-law 20.7 does not apply to him pursuant to Article 1435
C.c.Q., that he was not subject to the jurisdiction of the IDA under the
meaning of By-law 19.5, and that the contract that bound him to the IDA does
not govern his conduct after his resignation. Mr. Séguin also contended that
the Hearing Panel does not have jurisdiction to decide whether or not his
conduct constituted a failure to comply with any provisions.
    The motion was heard on May 23 and 25, 2007. In its decision, rendered
June 29, 2007, the Hearing Panel dismissed the motion and upheld the IDA's
jurisdiction to proceed in the matter of the complaint dated December 8, 2006.
    In signing the Uniform Application for Registration/Approval for
individuals, Mr. Séguin became party to a contract with the IDA on December
16, 2002. Contrary to Mr. Séguin's contentions, the Hearing Panel has
concluded that this contract was not one of adhesion under the meaning of
article 1379 of the C.c.Q. Indeed, while the Uniform Application for
Registration/Approval for individuals and, more particularly, the Certificate
and Agreement of Applicant and Sponsoring Firm, by which Mr. Séguin undertook
to know and to comply with the IDA by-laws and their amendments, were
essential stipulations that could not be freely discussed by him, they were
not imposed by the IDA or written by it, on its behalf, or on its
instructions. Rather, the essential stipulations were imposed by the State,
which dictated the wording of the legislation and the regulations. The Uniform
Application for Registration/Approval for individuals is one of the elements
prescribed by the lawmaker and the government as part of the framework for the
mandatory registration with the Securities Commission of persons working in
this field.
    Moreover, there is nothing affecting the IDA jurisdiction to stipulate
the rule of By-law 20.7, compelling a person to submit to an order to appear
and to provide information to investigators, even after his or her employment
has been terminated and for a period of five years.
    In addressing its request for information to Mr. Séguin in January 2006,
the IDA was within the five-year period set forth in By-law 20.7, and was
exercising a power provided under By-law 19.5, which the Hearing Panel
    Finally, the Hearing Panel stated that By-law 20.33 (1) confers on the
Hearing Panel the jurisdiction to impose penalties for the conduct of a person
other than an Approved Person, notably a "person under the jurisdiction of the
Association." According to the Hearing Panel, when one talks about an
"Approved Person", it is obviously a "person under the jurisdiction of the
Association", as Mr. Séguin is. It would be illogical for a Hearing Panel to
have the power to find a person guilty of failing to conform with an IDA
by-law, but be prevented from imposing one or another of the penalties
provided in By-law 20.33 (2).
    Mr. Séguin filed an application for review of the Hearing Panel's
decision before the Bureau de décision et de révision en valeurs mobilières on
July 30, 2007.
    Mr. Séguin has not been registered with an IDA Member firm since December
30, 2005.
    For a complete summary of facts, please see IDA Bulletin 3676 at or

    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: Carmen Crépin, Vice-President, Québec, (514)
878-2854 or; Jeffrey Kehoe, Director, Enforcement Litigation,
(647) 200-7627 or

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