In reasons released October 5, 2023, the Capital Markets Tribunal summarily dismissed a motion by OSC Staff to adjourn a 15 day hearing on the merits approximately three weeks before it was scheduled to commence.
The adjournment was requested due
Securities litigation and enforcement
The Securities Litigation and Enforcement blog published by Norton Rose Fulbright covers developments in securities regulation, enforcement actions, and litigation trends affecting capital markets and financial institutions. It addresses regulatory changes by bodies such as the SEC and DOJ, shareholder proposal processes, class action litigation related to securities, and cross-border enforcement issues. The blog also discusses compliance strategies, white-collar crime enforcement priorities, and the impact of evolving legal frameworks on securities brokerage and financial crimes. It serves as a resource for legal professionals and market participants seeking updates on securities law enforcement, regulatory policy shifts, and litigation risks.
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Ontario’s Capital Markets Tribunal finds it does not have jurisdiction to “supervise” OSC investigation orders
In Binance Holdings Limited (Re), 2023 ONCMT 27, Ontario’s new Capital Markets Tribunal (the Tribunal) clarified that it does not have the jurisdiction to revoke an investigation order made by the Ontario Securities Commission (OSC).
Background
In May 2023,…
What’s the Difference? Ontario Divisional Court finds trading in Contracts for Difference amounts to trading in unregistered securities: VRK Forex & Investments Inc. v Ontario Securities Commission, 2023 ONSC 3895
Ontario’s Divisional Court has upheld a decision of the new Capital Markets Tribunal, finding an over-the-counter financial instrument to meet the definition of “investment contract” pursuant to the Securities Act.
Background
The appellants conducted business trading in Contracts for Difference…
US SEC targets Coinbase, signaling stricter enforcement against crypto exchanges
On March 22, 2023, the Securities and Exchange Commission (Commission or SEC) issued a Wells Notice to Coinbase, Inc., the largest US-based cryptocurrency exchange and a NASDAQ-listed company.
A Wells Notice is a communication from the SEC enforcement staff (Staff)…
Primer on Prospectus Exemptions
Mutual Fund Managers’ Liability for “Time Zone Arbitrage”: Fischer v. IG Investment, 2023 ONSC 915
At the conclusion of a liability trial before the Ontario Superior Court of Justice in this class action commenced 17 years ago[1], two Canadian mutual fund managers were found negligent for having failed to prevent certain hedge funds…
Increasing Enforcement: OSC and SEC Take Aim at Cryptocurrency Platforms
On December 12, 2022, the Ontario Securities Commission (OSC) issued a news release further cautioning crypto trading platforms operating in Canada on the applicability of securities laws to their operations. This news release comes amidst the OSC’s increasing oversight of…
Solicitor Client Privilege Claims over Seized Documents D.L. v. Autorité des marchés financiers, 2022 QCCS 2157
In D.L. v. Autorité des marchés financiers (AMF), the Superior Court of Quebec ruled on solicitor client privilege claims made by D.L. to resist disclosure of documents seized by the AMF at D.L.’s home in the context of an ongoing…
US SEC prevented from expanding fraudulent scheme liability
Fraudulent Transaction Offence at s. 199.1 Quebec Securities Act : a Mens Rea Offence Autorité des marchés financiers c. Goyette 2022 QCCQ 2872
In late May 2022, the Court of Quebec Criminal and Penal Division issued its decision in AMF v. Goyette.
It is significant because it is the very first decision deciding that the market manipulation offence set out at section 199.1 of…