News Release
BC Supreme Court upholds commission power to enter and search business premises
-
Date:
2001-04-05 -
Number:
2001/11
Released: 04/05/01 Contact: Michael Bernard
NR 01-11 (604) 899-6524 or
(BC only) 1-800-373-6393
Vancouver -- The British Columbia Supreme Court has upheld the BC Securities Commission's power to search a business premises for documents and information in aid of an investigation.
In a decision released this week, Justice M. I. Catliff found that an Order to Enter Premises issued under section 143 (3) of the Securities Act did not violate the unreasonable search and seizure section of the Charter of Rights and Freedoms. The judge also rejected a claim that the order permitted a "fishing expedition", saying that the standards for obtaining the order were stringent enough to deter that improper use of power.
Enforcement Director Sasha Angus said he was pleased with the court ruling because it confirms the Commission's ability to apply for and act on search orders issued under the Securities Act. "We intend to continue using these orders in appropriate cases in future to protect the public interest."
The judge made the ruling after considering a petition by Michael Mitton, Charles Wiebe and Capital Ventures Ltd. to strike down the section. The petition was the first-ever court challenge of the provision and arose during the Commission's investigation into the affairs of the H and R Enterprises Inc. and others.
Justice Catliff compared the case to others involving income tax and criminal offences and concluded that the primary purpose of securities legislation is to protect the investing public. It is a form of economic regulation. As such the standards applied in criminal matters should not be strictly applied in a regulatory case because the Commission must be able to use these powers to meet its purpose of regulating the market and protecting the public interest.
The BC Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. For more information, contact Communications Manager Michael Bernard at 899-6524.
NR 01-11 (604) 899-6524 or
(BC only) 1-800-373-6393
Vancouver -- The British Columbia Supreme Court has upheld the BC Securities Commission's power to search a business premises for documents and information in aid of an investigation.
In a decision released this week, Justice M. I. Catliff found that an Order to Enter Premises issued under section 143 (3) of the Securities Act did not violate the unreasonable search and seizure section of the Charter of Rights and Freedoms. The judge also rejected a claim that the order permitted a "fishing expedition", saying that the standards for obtaining the order were stringent enough to deter that improper use of power.
Enforcement Director Sasha Angus said he was pleased with the court ruling because it confirms the Commission's ability to apply for and act on search orders issued under the Securities Act. "We intend to continue using these orders in appropriate cases in future to protect the public interest."
The judge made the ruling after considering a petition by Michael Mitton, Charles Wiebe and Capital Ventures Ltd. to strike down the section. The petition was the first-ever court challenge of the provision and arose during the Commission's investigation into the affairs of the H and R Enterprises Inc. and others.
Justice Catliff compared the case to others involving income tax and criminal offences and concluded that the primary purpose of securities legislation is to protect the investing public. It is a form of economic regulation. As such the standards applied in criminal matters should not be strictly applied in a regulatory case because the Commission must be able to use these powers to meet its purpose of regulating the market and protecting the public interest.
The BC Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. For more information, contact Communications Manager Michael Bernard at 899-6524.