A British Columbia Securities Commission panel has ruled that there is no evidence to issue a cease-trade order against a group of offshore companies and individuals for trading on behalf of undisclosed beneficial owners.

Earlier this year, the same panel had dismissed an application by staff for enforcement orders against Lines Overseas Management Limited and against other companies and individuals related to Lines Overseas.

In the Jan. 12 decision, the panel considered the account opening forms for Lines Overseas at some British Columbia dealers. It said the forms appeared to show that “at least some” of Lines Overseas’ trading” is being done on behalf of undisclosed beneficial owners.” Noting that Lines Overseas was very active in Canadian markets, the panel went on to ask the parties for submissions to determine whether the commission should order that Lines Overseas cease trading in B.C. until it provided complete information to its dealers.

After considering the parties’ submissions, the panel ruled that it did not have sufficient evidence to make the cease trade order, saying: “Although we still hold the concern we expressed in our January decision, we have no evidence on which to make a cease-trade order against Lines Overseas. The onus of establishing that it would be in the public interest to do so rests on the executive director.”