Banking, Bankruptcy & Insolvency
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July 31, 2024
AMPs for securities fraud can be debts released by bankruptcy discharge: SCC
Settling conflicting appellate case law over whether the exemption in s. 178(1)(e) of the federal Bankruptcy and Insolvency Act enables administrative money penalties (AMPs) and disgorgement orders imposed by a provincial securities regulator to survive a bankruptcy discharge, the Supreme Court of Canada ruled 5-2 that $13.5 million in AMPs imposed by the BC Securities Commission on two undischarged bankrupts for fraudulent securities activity is a debt that can be released by a future discharge in bankruptcy. But it ruled unanimously in addition that approximately $5.6 million in related disgorgement orders would survive any discharge from bankruptcy the pair might obtain in future.
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July 26, 2024
SCC’s 9-0 judgment on interpreting historic treaties a big win for First Nations, their counsel say
Live up to the honour of the Crown and its “sacred” treaty promises — or the courts will step in. That might sum up the message from the Supreme Court of Canada to the defendant governments of Ontario and Canada in a multi-billion-dollar lawsuit by Anishinaabe First Nations, who ceded by treaty 174 years ago a huge swath of their traditional Northern Ontario territories only to have successive federal and provincial governments “dishonourably” flout that treaty by barely compensating the cash-strapped Indigenous communities while the Crown and big business reaped billions over the decades from the mineral, timber and other resources of the ceded lands.
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July 23, 2024
Canadian securities regulators stepped up enforcement in 2023-24, driven in part by crypto schemes
Canadian securities regulators commenced 83 enforcement proceedings between July 1, 2023, and June 30, 2024, with 27 cases of selling securities illegally making it the most common offence, according to the Canadian Securities Administrators (CSA) annual year-in-review report.
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July 23, 2024
Appeal court finds insured not covered for failing to notify insurer of securities fraud probe
The Ontario Court of Appeal has dismissed an appeal in which the insured was not able to receive coverage or relief from forfeiture due to his delay in notifying the insurer about circumstances that would reasonably lead to a claim.
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July 17, 2024
Ontario court approves $1.5M settlement for automatic mortgage renewal class action
The Ontario Superior Court has approved a $1.5 million settlement in a class action against a bank concerning allegations that that bank’s practice of automatically renewing mortgages resulted in higher interest rates and financial losses for homeowners.
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July 16, 2024
Fines for investment and mutual fund dealers declined sharply in 2023-24, regulator reports
Canada’s industry watchdog for investment dealers and mutual fund dealers handed out about $14.4 million in fines, cost orders and disgorgement orders during the 2023-24 fiscal year, in addition to suspending 24 dealers and permanently barring or suspending 15.
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July 11, 2024
Proposed OSC rule details new process for returning money to securities fraud victims
Canada’s largest provincial securities regulator is floating a proposed new process for returning money to investors affected by securities fraud, but one lawyer questions how effective it will be in aiding fraud victims.
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July 11, 2024
New associate joins Polley Faith
A recent news release announced the addition of Alexia Parente as an associate at the litigation firm, Polley Faith LLP.
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July 08, 2024
B.C. Court of Appeal upholds Privacy Act claims against Capital One in certifying class action
The B.C. Court of Appeal has upheld the certification of a class action against financial services giant Capital One over a 2019 data breach that affected six million Canadians, ruling that it was not plain and obvious that Privacy Act claims against the company as a data custodian were bound to fail.
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July 08, 2024
Manitoba regulator running mental wellness challenge for lawyers
The new president of Manitoba’s law society is hoping an ongoing “wellness challenge” for lawyers will put them on the path to minding their mental health while at work. The Law Society of Manitoba’s (LSM) Wellness Challenge 2024, the first of its kind by the regulator, is a voluntary project where participants engage in various wellness activities over an eight-week period. The activities, grouped into two-week slots, began June 17 and will run through to Aug. 9.