News Release

Vancouver – A British Columbia Securities Commission panel has ruled that there is no evidence to issue a cease-trade order against a group of offshore companies and individuals for trading on behalf of undisclosed beneficial owners.

Earlier this year, the same panel had dismissed an application by staff for enforcement orders against Lines Overseas Management Limited and against other companies and individuals related to Lines Overseas. 

In the Jan. 12, 2005 decision, the panel considered the account opening forms for Lines Overseas at some British Columbia dealers.  It said the forms appeared to show that “at least some” of Lines Overseas’ trading “is being done on behalf of undisclosed beneficial owners.”  Noting that Lines Overseas was very active in Canadian markets, the panel went on to ask the parties for submissions to determine whether the commission should order that Lines Overseas cease trading in B.C. until it provided complete information to its dealers.

After considering the parties’ submissions, the panel ruled that it did not have sufficient evidence to make the cease trade order, saying:

“Although we still hold the concern we expressed in our January decision, we have no evidence on which to make a cease-trade order . . . against Lines Overseas. . . . [T]he onus of establishing that it would be in the public interest to do so rests on the Executive Director.  If the Executive Director wishes to pursue the matter, the necessary evidence should be gathered and a notice of hearing issued.”

The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province. You may view the commission’s ruling on our website www.bcsc.bc.ca by typing in the search box, Lines Overseas Management Limited or 2005 BCSECCOM 144.  You may view the commission’s January 2005 decision by typing in 2005 BCSECCOM 29. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.