An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has dismissed a motion from a former broker in New Brunswick that the panel hearing in his case be constituted entirely of members whose mother tongue is English as that is the former broker’s primary language.

In dismissing the motion brought by Robert Crandall, the IIROC hearing panel noted in its decision that there is a constitutional right for a person to have a hearing in the appropriate language: “The panel has confirmed and the respondent recognizes that this hearing and all procedures will be conducted in English.”

Therefore, as Crandall’s right to a hearing in his own language is being complied with, the hearing panel said, adding the request for a panel constituted of members whose mother tongue is English “is not recognized by law or authorities”.

The panel also denied a second motion from Crandall to have one of the members of the hearing panel, Gilles Archambault, disqualified from hearing his case on the grounds that he could be biased as Crandall and Archambault both worked for ScotiaMcLeod Inc. from 1984 to 1999.

According to the hearing panel’s decision, Crandall argued that although he was based in New Brunswick and Archambault was in Montreal, the two men may have crossed paths at branch managers’ meetings, conferences, or by telephone, over the years, and that this compromises the hearing panel.

However, the hearing panel ruled that Crandall did not establish any reasonable apprehension of bias: “As a whole, the panel considers that there is a lack of specificity in the respondent’s proposition.”

The panel noted that Crandall can’t recall any particular encounter between them; there is no particular ground of conflict between the two men; and that the alleged violations occurred when they no longer worked at the same firm.

In addition to denying Crandall’s motions, the panel also ordered:
> Crandall comply with IIROC’s request that disclosure made to him as part of the disciplinary proceeding only be used for his defence;
> the information can only be shared with his lawyer;
> and after the hearing is concluded, the disclosure must be returned to IIROC, and any copies of it are to be destroyed.

The hearing panel’s decision indicates that Crandall argued that these conditions are not justified, given that IIROC hearings are conducted in public, and he contends that all information should be public.

However, the panel ruled that IIROC has the obligation to strike a balance between the requirement to make disclosure to a respondent, and its obligation to protect the privacy of third parties.

The panel found that IIROC’s position is “well founded in law” and ordered that Crandall comply with the conditions sought by IIROC.

Crandall is facing allegations that he engaged in excessive trading, unauthorized discretionary trading and that he made unsuitable recommendations.

The alleged violations occurred while Crandall was a registered rep with Wellington West Capital Inc. and its successor, National Bank Financial Ltd., in Fredericton. He is no longer registered with an IIROC firm.

Those allegations have not been proven and a disciplinary hearing has now been scheduled for Oct. 20-22 in Fredericton.