Round v. Institute of Chartered Accountants of Ontario, 2015 ONSC 7099, dismissing an application for judicial review following commencement of professional misconduct proceedings

The Professional Conduct Committee (the "Committee") of the Institute of Chartered Accountants of Ontario (the "Institute") became aware that a professional services firm not registered with the Institute might be providing accounting services to the public. During the course of this investigation, Mr. Round, a member of the Institute and the president of the firm, was asked to produce information to, and appear before, the Committee.  

When Mr. Round failed to produce the requested information and appear before the Committee, the Institute commenced professional misconduct proceedings against Mr. Round and included in its charges an allegation of failing to cooperate with the regulatory process.

Mr. Round then applied to the Ontario Superior Court for judicial review on the basis that the Institute lacked jurisdiction to investigate the allegations as there was no identified complainant.

The Court dismissed the application for judicial review, holding that while the Court has the power to intervene in administrative proceedings, it should be reluctant to do so until the administrative process has run its course. The Court noted that this is particularly true when an administrative proceeding is still in its early stages because "constant disruptions in the process ... are not, generally speaking, in the public interest." In the early states, a professional member should not "challenge the bona fides  of the investigation," but should focus on his or her duty to cooperate.

Comment: Round endorses the principle that a professional member is required to cooperate with his or her regulator and demonstrates that a regulator can take disciplinary action for non-cooperation. It also signals a deferential approach to regulatory bodies in carrying out their administrative processes, especially early on in the proceedings. Nevertheless, in order to avoid a subsequent successful challenge on the basis of breach of procedural fairness, regulators should ensure that they are following their legislation and providing a fair process. 

Originally published June 2016

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