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IDA can’t discipline former registrants
Saskatchewan regulator rules SRO lacks jurisdiction


Wednesday, February 8, 2006

By James Langton

The Saskatchewan Financial Services Commission has ruled that the Investment Dealers Association doesn’t have jurisdiction to bring disciplinary action against former registrants.

The IDA launched disciplinary proceedings against three registrants in 2004. Two of the three were no longer registrants, and they sought a stay of the disciplinary proceedings on those grounds. These motions were dismissed by the IDA hearing panel, and its appeal panel. From there, they turned to the SFSC.

In the case of the two who are no longer registrants, the SFSC found, “Since the IDA has no authority to regulate former members or former approved persons either under its bylaws or in contract, it has no jurisdiction.” It therefore allowed their appeals and granted stays of the disciplinary proceedings against them.

The third person accused remains a registrant, although he alleges that the IDA has lost jurisdiction because there has been unreasonable delay by the IDA in its investigation or prosecution of the charges against him. The SFSC dismissed this argument, disallowed his appeal and denied a stay in that case.

Decision