CSA release 2014 Enforcement Report

February 27, 2015

The Canadian Securities Administrators recently released their 2014 Enforcement Report, which provides a summary of the enforcement actions undertaken by CSA members over the past year.

According to the report, CSA member staff initiated 105 proceedings in 2014, involving 189 individuals and 92 companies. The most common offences for which proceedings were commenced included charges of illegal distribution, fraud, market manipulation and misconduct by registrants.

CSA member staff also concluded 105 cases against 149 individuals and 106 companies in 2014. About $58.2 million in fines and administrative penalties were ordered, in addition to about $65.7 million in restitution. The report also provides highlights of specific cases.

Of particular interest, while the number of cases concluded in respect of illegal distributions dropped from 220 in 2013 to 122 in 2014, the fines and penalties imposed in those types of cases rose from just under $17 million to $17.6 million (although the amount of restitution and compensation dropped by about $7 million to about $12.7 million). Also notable was the fact that courts in Alberta, Ontario and Quebec imposed jail terms for five individuals last year for cases involving fraud and illegal distributions.

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