A report from the Canadian Securities Administrators shows that new enforcement actions slipped in the second half of 2004, but more cases were resolved compared to the first half of the year.

The report, which covers the October 1, 2004 to March 31 time frame, shows that CSA members launched 65 new enforcement matters in that period. And a total of 106 cases reached a conclusion during the period, including 88 cases that resulted in sanctioning orders or settlements that often included several persons or companies. The most popular type of resolution was settlement agreements, which occurred in 54 cases. Sanctions were ordered in another 34 cases. In 14 cases, findings have been handed down, but sanction decisions are pending. Just four cases were withdrawn.

The matters addressed include illegal distributions, illegal insider trading, market manipulation and fraud, disclosure violations and registrant misconduct. The biggest issues settled during the period were the mutual fund market timing cases that were resolved in late December.

The level of enforcement activity is more or less consistent with what was reported in the CSA’s inaugural enforcement report, which was released last December. That report showed that regulators launched 77 enforcement proceedings and resolved 82 cases during the six months ended September 30, 2004. Of the 82 cases resolved in the April-September 2004 period, 32 resulted in sanctions, 27 ended in settlement agreements, 19 resulted in decisions but with sanctions pending, and four cases were withdrawn. In addition, six decisions were appealed and 29 interim orders were issued.

In the latest period, the CSA also reports that 27 interim orders were issued, and another 11 appeals were heard.

The report also notes that, during the same period, self-regulatory organizations (Market Regulation Services Inc., the Mutual Fund Dealers Association and the Investment Dealers Association) concluded 19 settlement agreements, and ordered sanctions in eight cases.

http://www.csa-acvm.ca/pdfs/Enforcement-Report_Oct-Mar2005_Eng.pdf