British Columbia Securities Commission

British Columbia Securities Commission

April 15, 2009 09:30 ET

Commission Upholds Decisions Made by Investment Industry Self-Regulatory Organization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2009) - A British Columbia Securities Commission panel has upheld disciplinary action taken by the Investment Industry Regulatory Organization of Canada (IIROC) against Golden Capital Securities Ltd.

In late 2007 and early 2008, an IIROC hearing panel found that Golden Capital contravened IIROC bylaws by withholding information reasonably required for an IIROC investigation. The panel fined the firm $75,000 and ordered it to pay $76,760 in costs.

Golden Capital asked the commission to set aside the IIROC panel's decision because, it said, IIROC had not proven that the information it demanded was reasonably required for the investigation and could include irrelevant and private information. The firm also said the penalty was unfair.

In confirming the IIROC panel's decision, the commission panel overturned existing IIROC precedent that IIROC had an obligation to act reasonably in the initiation and conduct of an investigation. "Its only duty is to act in good faith," the panel said, noting that "firms and individuals in the business of trading in securities have an extremely low expectation of privacy over records and things connected to their business."

The commission panel said the penalty and costs imposed by the IIROC panel were reasonable and appropriate, observing that it "would have considered a higher penalty reasonable and appropriate in the circumstances of this case."

IIROC was known as the Investment Dealers Association of Canada at the time of the Golden Capital decisions.

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 www.bcsc.bc.ca by typing in the search box, Golden Capital Securities Ltd. or 2009 BCSECCOM 192. If you have questions, contact Andrew Poon, media relations, 604-899-6880.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.

Contact Information

  • British Columbia Securities Commission
    Andrew Poon
    604-899-6880 or (Canada) 1-800-373-6393
    www.bcsc.bc.ca