Earlier this week, the British Columbia Securities Commission
(BCSC) released its 2014 Enforcement Report,
which represents the first annual enforcement report to be
published by the BCSC.
The 31-page report provides an overview of the BCSC's
enforcement activities in 2014 which consisted, in part, of 22
administrative and three criminal proceedings. In 2014, the BCSC
handled 173 new cases. The most common violations included those
related to unregistered activity, illegal sales of securities and
The report also discusses the results of two targeted BCSC
initiatives. The first initiative addresses risks posed by the use
of B.C. dealers and accounts in "offshore secrecy
jurisdictions" to trade on inside information, manipulate the
market, or engage in other forms of market misconduct. The
enforcement efforts under this program are focused on foreign
financial institutions trading for B.C. residents without
registration and brokers engaging in offshore insider trading.
Among others, in 2014 this initiative resulted in a settlement
agreement with Bank Gutenberg AG for trading with BC residents
The second is the "Private Placement Review Program"
which uses technology to analyze data from exempt distribution
reports, along with other internal and external sources, against a
preset list of 38 "risk indicators" to identify companies
that may post a high risk in the private placement market. Several
cases were opened, with one resulting in findings of fraud, illegal
distributions and breach of a cease trade order and another ending
with a settlement and payment of a fine.
In terms of enforcement tools, in 2014, the BCSC obtained 716
production orders, 58 cease-trade orders and froze $22.36 million
in assets. In 2014, the average case took 15.1 months to reach a
settlement or an enforcement decision. In 2015, the BCSC
anticipates that the average case will take 22 months to reach a
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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