The applicants sought to file a Notice of Hearing under s. 127 of the Securities Act to reprimand Commission Staff and rectify alleged past non-compliance related to the delayed issuance of a prospectus receipt.
The Secretary returned the draft notice, stating only Staff could bring a s. 127 hearing.
The applicants moved for directions.
The Commission declined to decide whether a third party could ever seek a s. 127 hearing, finding that even if they could, the relief sought here was punitive and retrospective.
Relying on the Supreme Court's decision in Asbestos, the Commission held that s. 127 is a regulatory provision intended to be preventive and prospective, not to remedy alleged past misconduct or harm to private parties.
