Ricardo Codina

The appellants appealed a decision of the Ontario Securities Commission (OSC) that upheld the Investment Dealers Association of Canada's (IDA) disciplinary actions against them.

The IDA had fined the appellants and terminated their membership for failing to provide documents during an investigation into alleged principal trading in an error account.

The appellants argued the IDA lacked jurisdiction, its by-laws violated the Charter, and the investigation was unreasonable.

The Divisional Court applied a reasonableness standard of review and dismissed the appeal, finding the IDA is not a government entity subject to the Charter, its investigative powers are valid under the regulatory scheme, and its disciplinary process and penalties were reasonable.

The appellant appealed a decision of the Ontario Securities Commission that set aside a decision of the IDA District Council and substituted a harsher penalty for his involvement in facilitating a market manipulation scheme.

The Divisional Court dismissed the appeal, finding that the Commission applied the correct standard of review, properly concluded that the District Council misapprehended material evidence, and reasonably substituted its view of the public interest in imposing a severe penalty including a fine and suspension.