Monetary sanctions doubled: The regulators
collectively imposed the highest amount of monetary sanctions on
market participants since 2009, the year their investigation into
the crash of the asset-backed commercial paper market was settled.
In 2015, regulators imposed $138.3 million in fines and
administrative penalties ($58.2 million in 2014) and $111.7 million
in restitution, compensation and disgorgement ($65.7 million in
2014). This represents an overall increase of 102% in monetary
More cases concluded and commenced: The
regulators commenced 108 cases (2014: 105) against 165 individuals
and 101 corporations in 2015. They concluded 145 cases (2014: 105)
against a total of 223 individuals and 117 corporations. By
comparison, the three key self-regulatory organizations (Investment
Industry Regulatory Organization of Canada, the Chambre de la
sécurité financière and the Mutual Fund
Dealers Association of Canada) concluded 139 enforcement cases in
2015 (2014: 112).
The most prevalent violations targeted by regulators were
illegal distributions (46% of proceedings commenced), fraud (24% of
proceedings commenced) and insider trading (10% of proceedings
Increasing use of preventive measures: The
regulators issued 52 interim orders and asset freeze orders (2014:
35) protecting $13.6 million in bank accounts (2014: $18.2
million). They also issued 84 investor alerts (2014: 52) warning
the public about not to invest with certain companies or their
representatives. Finally, the regulators issued 96 reciprocal
orders (2014: 58) recognizing and applying orders issued in another
The CSA report highlighted measures that had been implemented in
the last year to increase collaboration between its members and
boost their inter-jurisdictional reach, including:
Federal legislation changes that allow FINTRAC to share
information and work with the CSA.
Amendments to Alberta's Securities Act that
provide for automatic effect in Alberta of most new orders and
settlement agreements made by other CSA members.1
The launch of a Special Investigations Unit by the British
Columbia Securities Commission to investigate complex misconduct
and offshore trading activity.
The co-location of the RCMP's Integrated Market Enforcement
Team on the premises of the Ontario Securities Commission.
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.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
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