IDA – DUTY TO COOPERATE IN AN INVESTIGATION: In a May 2007 IDA hearing, BLG represented a broker charged with failing to cooperate in an IDA investigation. The IDA Panel is expected to issue comprehensive written reasons in the next few weeks that will provide important guidelines for brokers and firms concerning the level and nature of cooperation required, and we will report on those in a future issue.
THE COURTS: The Alberta Court of Queen’s Bench recently released reasons in a case that should be of some interest to brokers and, perhaps more so, their employers - Northey-Taylor v. Casey, [2007] A.J. No. 256 (Q.B.).
DIRECTOR/OFFICER SUITABILITY CASE UPDATE: Under their bylaws, stock exchanges have the right to determine the suitability of individuals to act as directors, officers or in other capacities of listed companies. In one recent case, a seemingly routine unsuitability decision of the TSXV made its way to the Supreme Court of Canada, and the various decisions along the way set out some useful guidelines in this area of law.
MARKET MANIPULATION UPDATE: Every provincial Securities Act makes it an offence for brokers or anyone else to trade securities when they know or ought to know that the trades create or might result in artificial prices for the securities (i.e., market manipulation). Such activity is not only a statutory violation, but a violation of a registrant’s code of ethics and the internal policies of every brokerage.

type Brokers' Report - June 2007