James A. Angus

The respondents, securities brokers, breached the prospectus requirement of the British Columbia Securities Act by splitting a private placement.

The British Columbia Securities Commission imposed the maximum administrative penalty of $100,000, considering general deterrence.

The Court of Appeal reduced the penalty, finding the maximum unreasonable and general deterrence an inappropriate factor.

The Supreme Court of Canada allowed the appeal, holding that the standard of review is reasonableness, general deterrence is an appropriate factor in assessing a penalty in the public interest, and the Commission's imposition of the maximum penalty was reasonable given the respondents' deceitful conduct and leadership roles.

The British Columbia Securities Commission ordered a registered broker to produce records to assist the United States Securities and Exchange Commission in an investigation.

The broker challenged the constitutional validity of the provincial legislation authorizing the order, arguing it was ultra vires the province.

The Supreme Court of Canada held that the legislation was intra vires the province under its power over property and civil rights, as its dominant purpose was the enforcement of domestic securities law through reciprocal cooperation and uncovering foreign violations by domestic registrants.