Ontario Superior Court of Justice, Divisional Court Affirms Ontario Securities Commission’s Decision In the Matter of Derivative Services Inc. and Malcolm Robert Bruce Kyle

TORONTO – In the decision released on May 25, 2005 , the Ontario Superior Court of Justice, Divisional Court affirmed the Ontario Securities Commission’s decision in the Matter of Derivative Services Inc. (DSI) and Malcolm Robert Bruce Kyle (Kyle).

The Court dismissed all aspects of the appeal by DSI and Kyle. In affirming the decision of the Commission, the Court noted that the “…Supreme Court of Canada has established the deference that should be shown to Securities Commissions.”

The Divisional Court decision relates to the appeal by DSI and Kyle of the decision of the Commission dated December 6, 2002. The Commission had affirmed the decision of the IDA’s Ontario District Council regarding DSI and Kyle in which the District Council found that DSI and Kyle had engaged in conduct unbecoming by failing to provide documents and information to IDA Enforcement staff in the course of a regulatory investigation.

The Commission had dismissed an application by DSI and Kyle in which they challenged several disciplinary rulings of the District Council. In the course of these proceedings, DSI and Kyle raised a number of legal issues challenging the jurisdiction of the IDA over its members.

A copy of the Divisional Court decision is made available on the OSC’s website (www.osc.ca).

- 30 -