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.