Judith Robertson

The applicant brought a motion for a partial stay of a Canadian Investment Regulatory Organization (CIRO) disciplinary panel's sanctions decision pending a review application.

The applicant sought to stay his suspension as a registered representative and executive.

Applying the RJR-MacDonald test, the Capital Markets Tribunal found that while there was a serious issue to be tried, the applicant failed to establish that he would suffer irreparable harm if the stay was refused.

The applicant's evidence of potential financial loss and loss of clients was deemed speculative and unconvincing.

The motion for a stay was dismissed.

The applicant and the respondent sought approval of a settlement agreement regarding allegations that the respondent maintained inadequate controls over marketplace participants' confidential order and trade information, contrary to National Instrument 21-101.

The respondent self-identified the issue but initially failed to promptly advise the regulator of the true nature of the problem.

The Tribunal approved the settlement, finding the agreed sanctions—including a $600,000 administrative penalty, $75,000 in costs, a reprimand, and an independent external review—to be within a reasonable range and in the public interest.

Following a merits decision finding that the respondents engaged in unregistered trading, illegal distribution, and fraud, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The respondents raised over $425,000 from investors and misappropriated most of the funds.

The Commission found multiple aggravating factors, including the individual respondent's history as a registrant and his misleading of Staff during the investigation.

The Commission ordered permanent market bans, disgorgement of $313,847, an administrative penalty of $300,000, and costs of $100,000.