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Canadian Securities Administrators Release Annual Report

The Canadian Securities Market is made up of trillions of dollars in financial wealth. Fines and administrative penalties in 2015 by the Canadian Securities Administrators surpassed $138 million. That’s more than double the previous year.

  • Illegal distributions: $36,571,080
  • Fraud: $68,460,000
  • Misconducts by Registrants: $2,485,394
  • Illegal Insider Trading: $5,240,872
  • Disclosure Violations: $30,000
  • Market Manipulation: $24,187,450
  • Other: $1,324,000
  • Total: $138,298,796

About half (52%) of the above matters were concluded in 2015 by court decision (under securities legislation) and the rest (48%) was evenly split between contested hearings before tribunals and settlement agreements. Four specific ‘headline’ cases, some going back years, accounted for most of the penalties and administrative fines:

  • Bossteam – illegal distribution $28M
  • Rashida Samji – fraud $33M
  • Freedom Investment Club – fraud $30M
  • OSE Corp – market manipulation $21M

Additionally over $100M was ordered in restitution, compensation and disgorgement.

The CSA wrapped up 4 criminal court cases and commenced another 6 last year. They also froze more than $13M in assets as prevention of money hiding and offshoring. A total of 52 interim and asset freeze orders were issued, up from 35 in 2014. Additionally, there were 96 reciprocal orders which are typically applied from other jurisdictions, up from 58 in 2014.

CSA_Infographic_ENG-01

The full CSA 2015 Enforcement Report can be viewed online.

About the CSA

The CSA is the council of the 10 provincial and three territorial securities regulators in Canada. The mission of the CSA is to facilitate Canada’s securities regulatory system, providing protection to investors from unfair, improper or fraudulent practices and to promote fair, efficient and transparent capital markets, through the development of harmonized securities regulation, policy and practice.

The CSA seeks to streamline the regulatory process for companies that wish to raise capital and individuals and companies working in the investment industry. While most enforcement activity is conducted locally, CSA members also coordinate multi-jurisdictional investigations and share tools and techniques that help their staff investigate and prosecute securities law violations that cross borders.

 

 

Written by: Amar Mirchandani @amarmirch
Infographic: CSA

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