Canadian securities regulators collaborate to protect investors and enforce securities law

Report highlights CSA member efforts to detect, disrupt and deter securities misconduct

Montreal – The Canadian Securities Administrators (CSA) today released its fiscal year 2019/20 Enforcement Report, which outlines how securities regulators are protecting investors and the integrity of Canada’s capital markets.

Highlights from the fiscal year 2019/20 Enforcement Report include:

• 66 Investor Alerts were issued to warn the public about possible investment scams;
• 65 individuals were banned from participating in the capital markets;
• 95 interim cease-trade and asset-freeze orders were issued;
• Four individuals received a combined total of 18 years and 11 months years of jail time through regulators’ support of Criminal Code case investigations;
• 23 fraud cases were concluded, resulting in over $3 million in penalties; and
• 291 whistleblower tips were received.

“The CSA is a vital platform for nationwide collaboration and information sharing in the enforcement of securities laws in Canada. This year’s Enforcement Report outlines how CSA members protected Canadians from those who prey on investors and undermine confidence in the capital markets,” said Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers. “Our resolve to work together was particularly critical in the last part of fiscal year 2019/20 when the COVID-19 pandemic hit and drove immense economic uncertainty. Our mission to safeguard investors and ensure that Canada’s capital markets are honest, fair and efficient has never been more important than it is today.”

Since the trading of securities and derivatives spans provincial and national boundaries, CSA members worked closely to share information, refer cases and seek assistance. This past fiscal year, members referred 91 cases to each other and provided assistance in 63 cases. They also cooperated with self-regulatory organizations in Canada, securities regulators in other countries, and law enforcement agencies in Canada and abroad.

In addition, the report outlines how the CSA enhanced its technological tools and skills to conduct investigations and better recognize and target fraudulent activity.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

Click here to view the Canadian Securities Administrators fiscal year 2019/20 Enforcement Report.

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