British Columbia Securities Commission

British Columbia Securities Commission

September 13, 2005 09:30 ET

British Columbia Securities Commission: Commission Overturns IDA Panel Decision Rejecting Settlement with Investment Dealer Manager

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 13, 2005) - The British Columbia Securities Commission has granted the appeal of a senior manager of a Vancouver-based investment dealer of a decision by the industry's self-regulatory body.

On Aug. 24, 2004, a Pacific District Council panel of the Investment Dealers Association of Canada rejected a settlement agreement between John Frederick Brighten and IDA enforcement staff. On Sept. 23, 2004, Brighten applied to the commission for a hearing and review of the IDA panel's decision.

The settlement related to Brighten's role in the supervision of the activities of Alan Bruce Alexander Thomson while Thomson was a registered representative at IPO Capital Corp. in Vancouver. On Aug. 3, 2004, an IDA panel decided that Thomson had contravened IDA requirements. Brighten was the senior manager responsible for compliance at IPO during the time that Thomson contravened IDA requirements.

A commission panel found that, in the particular circumstances of this case, the earlier participation of one member of the IDA panel in the panel that had heard and decided the Thomson matter raised a reasonable apprehension of bias. The Thomson panel had made a finding that was critical of Brighten.

This, said the commission panel, meant that "an informed and reasonable person would reasonably perceive bias in (his) later participation in the Brighten hearing and decision, whether or not any prejudgment actually prejudiced Brighten." There was no suggestion in this case of actual prejudice. The commission panel decided that an informed observer might reasonably think that a predisposition to a particular point of view gained in the earlier matter could have affected the result in the second.

"This was an error of law," said the commission panel, "the effect of which is that the decision of the Brighten panel is void."

The commission panel rejected Brighten's second argument that the IDA panel had exceeded its jurisdiction.

The commission panel directed that the settlement agreement go to a second settlement hearing before an IDA panel with new members.

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 by typing in the search box, John Frederick Brighten or 2005 BCSECCOM 576.

Contact Information

  • British Columbia Securities Commission
    Andrew Poon
    Media Relations
    (604) 899-6880 or (B.C. & Alberta) 1-800-373-6393