Ontario Securities Commission
Commission des valeurs mobilières de l’Ontario
P.O. Box 55, 19th Floor 20 Queen Street West Toronto ON M5H 3S8
CP 55, 19e étage 20, rue Queen Ouest Toronto ON M5H 3S8
IN THE MATTER OF AN APPLICATION FOR A HEARING AND REVIEW OF A DECISION OF THE ONTARIO DISTRICT COUNCIL OF THE INVESTMENT DEALERS ASSOCIATION OF CANADA PURSUANT TO SECTION 21.7 OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED
AND
IN THE MATTER OF DISCIPLINE PROCEEDINGS PURSUANT TO BY-LAW 20 OF THE INVESTMENT DEALERS ASSOCIATION OF CANADA
BETWEEN
STAFF OF THE INVESTMENT DEALERS ASSOCIATION OF CANADA
AND
JEFFREY BRADFORD KASMAN AND CLINTON ANDERSON
Hearing: July 16, 2008
Reasons: November 28, 2008
Panel: James E. A. Turner
- Vice-Chair and Chair of the Panel
David L. Knight, FCA
- Commissioner
Counsel: Emily Cole
- For the Ontario Securities Commission
Andrew Pilla
- For the Investment Dealers Association
Alistair Crawley
- For Jeffrey Bradford Kasman and Clifton Anderson
REASONS AND DECISION
I. BACKGROUND
1On November 13, 2007, a disciplinary hearing panel of the Ontario District Council of the Investment Dealers Association of Canada (the "Hearing Panel") issued its decision on the merits in the matter of Jeffrey Bradford Kasman and Clinton Anderson (the "Respondents"). The Hearing Panel concluded that the Respondents engaged in manipulative and/or deceptive trading and that their conduct was in violation of By-law 21.9 of the Investment Dealers Association (the "IDA") and was unbecoming and contrary to the public interest. Effective June 1, 2008, the IDA combined its regulatory operations with those of Market Regulation Services Inc. to form the Investment Industry Regulatory Organization of Canada ("IIROC"). The IDA retained IIROC to carry out its regulatory functions. This case concerns the IDA by-laws that were in effect prior to June 1, 2008.
2The Hearing Panel issued its sanctions decision (the "Decision") on February 19, 2008. In the Decision, the Hearing Panel imposed on the Respondents a two-month suspension, a fine of $25,000 each and a cost award of $40,000 on a joint and several basis. The Hearing Panel also concluded that the Respondents should rewrite the Conduct and Practices Handbook examination within one year from the date of the Decision.
3On March 28, 2008, Staff of the Investment Dealers Association ("IDA Staff") filed a Notice of Request for a Hearing and Review