IDA appeals decision by Saskatchewan regulator
SFSC misunderstood associationís authority over former members, IDA says


Thursday, March 9, 2006

By James Langton

The Saskatchewan Financial Services Commission reports that both sides in a recent case are appealing one of its decisions.

The SFSC reports that the Investment Dealers Association of Canada has filed a notice of motion for appeal in the Saskatchewan Court of Appeal from a decision by the commission that was issued on February 6.

In that decision, the commission found that the IDA has no authority to regulate former members or former approved persons either under its bylaws or in contract, and therefore it has no jurisdiction to regulate two individuals who have left the industry. The commission accordingly stayed the IDAís disciplinary proceedings against them.

The IDA is seeking to overturn that ruling claiming the commission made errors in law in misunderstanding the IDAís jurisdiction over its members, its ability to impose penalties on members, and the standard of review.

In that original decision, the SFSC declined to stay proceedings against another man, Frederick Smith, ruling that the case was not prejudiced by the time it took the IDA to launch its proceedings against him, and held that there was no unreasonable delay. The SFSC notes that Smith has also filed a notice of motion for cross appeal from the commissionís decision. That motion claims that the commission misinterpreted the law regarding delay and abuse of process, and erred in its decision as a result.

See:  OSC & IDA misrepresentations to the public and IDA members