British Columbia Securities Commission

British Columbia Securities Commission

March 08, 2005 13:32 ET

British Columbia Securities Commission: Commission Panel Finds no Evidence for Cease-Trade Order Against Offshore Firms


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRITISH COLUMBIA SECURITIES COMMISSION

MARCH 8, 2005 - 13:32 ET

British Columbia Securities Commission: Commission
Panel Finds no Evidence for Cease-Trade Order Against
Offshore Firms

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - A British
Columbia Securities Commission panel has ruled that there is no evidence
to issue a cease-trade order against a group of offshore companies and
individuals for trading on behalf of undisclosed beneficial owners.

Earlier this year, the same panel had dismissed an application by staff
for enforcement orders against Lines Overseas Management Limited and
against other companies and individuals related to Lines Overseas.

In the Jan. 12, 2005 decision, the panel considered the account opening
forms for Lines Overseas at some British Columbia dealers. It said the
forms appeared to show that "at least some" of Lines Overseas' trading
"is being done on behalf of undisclosed beneficial owners." Noting that
Lines Overseas was very active in Canadian markets, the panel went on to
ask the parties for submissions to determine whether the commission
should order that Lines Overseas cease trading in B.C. until it provided
complete information to its dealers.

After considering the parties' submissions, the panel ruled that it did
not have sufficient evidence to make the cease trade order, saying:

"Although we still hold the concern we expressed in our January
decision, we have no evidence on which to make a cease-trade order
against Lines Overseas. The onus of establishing that it would be in the
public interest to do so rests on the Executive Director. If the
Executive Director wishes to pursue the matter, the necessary evidence
should be gathered and a notice of hearing issued."

The B.C. Securities Commission is an independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the commission's ruling on our website
www.bcsc.bc.ca by typing in the search box, Lines Overseas Management
Limited or 2005 BCSECCOM 144. You may view the commission's January 2005
decision by typing in 2005 BCSECCOM 29. If you have questions, contact
Andrew Poon, Media Relations, 604-899-6880.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    British Columbia Securities Commission
    Andrew Poon
    Media Relations
    (604) 899-6880 or (B.C. & Alberta) 1-800-373-6393
    www.bcsc.bc.ca