The B.C. Court of Appeal has denied the appeal by mutual fund salesperson Nirbhia Singh Gill and Gill Financial Corp., regarding a decision by the B.C. Securities Commission.

In a March 20, 2001, decision, Gill was found to have contravened certain provisions of the Securities Act.

On appeal, the main issue was whether it was reasonable for the commission to have found that the receipts, financial summaries and loan agreements issued by Gill and Gill Financial were securities within the meaning of the term “evidence of indebtedness” contained in the Act.

Gill argued that the receipts, financial statements and loan agreements the commission found to be securities were evidence of nothing more than private commercial transactions that were unrelated to securities trading and the capital markets and, that these dealings he had with two of his former mutual fund clients fell outside the scope of the Act and outside the commission’s jurisdiction.

The BCSC said that it’s decision did not purport to set out a test or to answer definitively how and when “evidence of indebtedness” is to be considered a “security”, but was limited to examining and weighing the testimony and other evidence to determine the true nature of the advance of funds to the personal appellant.

The appeal court sided with the BCSC, saying it couldn’t agree that the commission enlarged its jurisdiction with its decision. “There is no basis upon which this court could properly interfere with the commission’s findings of fact in this case and the analysis of the points raised by the appellants must proceed on that footing.”