What constitutes or not MNPI? Kitmitto (Re), 2022 ONCMT 12

Photo of Sophie MelchersPhoto of Linda FuerstBy Sophie Melchers and Linda Fuerst on Posted in Securities regulatory decisions
In late May 2022, in one of the first decisions of the new Ontario Capital Markets Tribunal, the Tribunal issued its decision in Kitmitto (Re), an insider tipping and trading case.  In Kitmitto, Ontario Securities Commission (OSC) Staff alleged the existence of a tipping chain in which multiple individuals acquired material non public information (MNPI) … Continue reading

Jurisdiction of Quebec Court in Class Action against Ontario Reporting Issuer on account of Fault Committed in Quebec and Injury Suffered in Quebec

Photo of Sophie MelchersBy Sophie Melchers on Posted in Securities regulatory decisions
Representative Plaintiffs Jon-Erik and Nicole Dillon (the Dillons) sought authorization from the Superior Court of Quebec (Court) to bring a class action against Wayland Group Corp (Wayland) under the general civil liability regime in Quebec (Art. 1457 Civil Code of Quebec (CCQ)). Wayland is a federal licensed producer and distributor of cannabis with production facilities … Continue reading

Objective Reliability and Materiality: Wong v Pretium Resources Inc., 2022 ONCA 549

Photo of Linda FuerstPhoto of David SeevaratnamBy Linda Fuerst and David Seevaratnam on Posted in Securities regulatory decisions
In this decision the Ontario Court of Appeal upheld Justice Belobaba’s dismissal of a securities class action on a motion for summary judgment on the basis that the defendant issuer had not made a misrepresentation by omission. The respondent, Pretium Resources (Pretium) is a mineral exploration company listed on the TSX and NYSE that undertook … Continue reading

Cease Trade and Freezing Orders to Stop a Pump and Dump Scheme Autorité des marchés financiers c. Kamaneh, 2022 QCTMF 18

Photo of Sophie MelchersBy Sophie Melchers on Posted in Securities regulatory decisions
The facts of this case are simple. The Quebec securities regulator, the Autorité des marchés financiers (AMF), alleged that between March 2021 and January 2022, Ramy Kamaneh and Mohamed Kada Mesli : participated in a market manipulation / pump and dump scheme targeting the securities of the companies Majic Wheels, ICOA and All American Pet … Continue reading

Application of Section 4.3 of the SPPA in Matters Before OSC Hearing Panels

Photo of Linda FuerstBy Linda Fuerst on Posted in Securities regulatory decisions
In Canada Cannabis Corporation (Re), 2022 ONSEC 9 the Ontario Securities Commission (OSC) was called upon to decide whether section 4.3 of the Statutory Powers Procedure Act (SPPA) operated to extend the term of office of a Commissioner (the Commissioner) until completion of a motion by a respondent in an OSC enforcement proceeding and an … Continue reading

US SEC settlement demonstrates the risks to investment advisers of using ESG investment decision-making metrics

Photo of Celia CohenPhoto of Kevin James HarnischPhoto of Seth M. KruglakPhoto of Samuel R. RamerPhoto of Nicholas JoynsonBy Celia Cohen, Kevin James Harnisch, Seth M. Kruglak, Samuel R. Ramer and Nicholas Joynson on Posted in Uncategorized
US SEC settlement demonstrates the risks to investment advisers of using ESG investment decision-making metrics | United States | Global law firm | Norton Rose Fulbright… Continue reading

Kennedy v. Akumin Inc. et al, 2022 ONSC 2571: The New Framework for Carriage Fights in Ontario

Photo of Linda FuerstPhoto of David SeevaratnamBy Linda Fuerst and David Seevaratnam on Posted in Securities regulatory decisions
The decision of Kennedy v Akumin Inc. et al, 2022 ONSC 2571 resolves a carriage motion pursuant to section 13.1 of the amended Ontario Class Proceedings Act, 1992 (CPA), involving competing class actions (the “Kennedy action” and the “Longair action”) each of which asserted a statutory secondary market misrepresentation cause of action pursuant to the … Continue reading

Solar Income Fund Inc. (Re), 2022 ONSEC 2:  Determining when a “Trading and Advising Relationship” Exists

Photo of Stephen TaylorBy Stephen Taylor on Posted in Securities regulatory decisions
In Solar Income Fund Inc. (Re), 2022 ONSEC 2 (the Solar Decision)[1] an OSC Hearing Panel considered, among other things, section 44(2) of Ontario’s Securities Act (the Act),[2] which prohibits false or misleading representations that a reasonable investor would consider relevant in deciding whether to enter into or maintain a trading or advising relationship with … Continue reading

A Cautionary Tale: A Flawed Cease Trade Order is not an Excuse to Continue Trading

Photo of Linda FuerstBy Linda Fuerst on Posted in Securities regulatory decisions
In Alberta Securities Commission v Felgate, 2022 ABCA 107 (Felgate), the Alberta Court of Appeal upheld the conviction of an individual for trading in securities while subject to a cease trade order, notwithstanding though the order was flawed. The appeal turned on two issues in particular: (1) whether an interim cease trade order could be … Continue reading

A broker’s good faith margin call and the consequences of failing to cover margin

Photo of Sophie MelchersBy Sophie Melchers on Posted in Securities regulatory decisions
On February 2, 2022, the Quebec Court of Appeal confirmed in part Mr. Justice Thomas M. Davis’s trial decision in KPH 11 c. Richardson Wealth Limited (Richardson GMP Limited), 2022 QCCA 148 condemning two clients of a securities broker to pay close to 5 million dollars after having failed to cover margin calls. This post … Continue reading
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