Securities Law & Instruments



O.S.C. POLICY 4.2 -
SUSPENSION OF REGISTRATION - CRIMINAL CHARGES PENDING

1. The facts which lead to a registrant being charged with a crime, in particular fraud or theft, may give rise to the conclusion that it would be prejudicial to the public interest to permit that registration to continue until a hearing can be convened. The Ontario Securities Commission may suspend the registration without a hearing pursuant to section 26(2) [27(2)] of the Securities Act (Ontario). The Commission is required to convene a hearing within fifteen days of the suspension. Alternatively it may conclude that the facts are not so clear or the allegations not so serious so as to warrant immediate suspension, in which case a hearing may be ordered under section 26(1) [27(1)]. In either event the Commission's concern is whether such public proceedings might prejudice the right of the registrant to a fair trial before the criminal courts.

2. The Commission is of the view that it has an obligation to act for the protection of the public under section 26 [27] without awaiting the results of the criminal proceedings notwithstanding that its proceeding might be founded on the same evidence. Except in extraordinary circumstances, the Commission will accede to a request made under section 9(1) of the Statutory Powers Procedures Act (Ontario) that the hearing be held in camera. In such cases the registrant's rights to a fair trial before the criminal courts would outweigh the desirability of adhering to the principle that all hearings be open to the public. In accordance with section 14 of that Act a witness will be informed by the tribunal of his rights under the Ontario and Canada Evidence Acts. Alternatively, the Commission will consider an application by the registrant to have the hearing postponed pending outcome of the criminal proceedings.(Former Policy 3-30: First published (1975) O.S.C.B. 1; published as 4.2 (1982) 4 O.S.C.B. 407E.]