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.
