In two successive hearings Monday, a panel of the Ontario Securities Commission issued sanctions against Wells Fargo Financial Canada Corp. and auditor William Campbell. The hearings were the result of a new process by which OSC staff prioritize and bring to a hearing quickly cases that do not require extensive investigation.

According to the OSC, the two cases involved facts that were relatively straightforward and conduct that was easily identified.

The proceedings were both launched in December 2004 and were in respect of alleged misconduct that occurred, in the case of Wells Fargo, three months earlier, and in the case of Andrew Campbell, seven months earlier.

In opening comments at the hearings, OSC litigator Greg MacKenzie said: “Staff wish to emphasize that the intent of the simplified process initiative is not to compromise in any way the rights and protections to which any respondent in an OSC proceeding is entitled. While the simplified process aims to bring certain matters to a hearing quickly, once the hearing commences we are in the hands of the Commission and it is expected that all of the normal rules, procedures and protections afforded to respondents continue to apply.”

Wells Fargo agreed that on four occasions over a 20-month period it failed to file pricing supplements for its medium term note program on time, as required under securities regulation.

In the approved settlement agreement, the OSC panel issued an order that Wells Fargo immediately implement a plan approved by OSC staff to ensure timely filing of pricing supplements, pay an administrative penalty of $20,000 to the commission and pay $5,000 towards the costs of the investigation and the proceeding.

Panel chairman Paul Moore, an OSC vice-chairman, noted this was the first application of an administrative penalty by the Commission under expanded sanctioning powers granted to the Commission by legislation in 2003. Moore also noted that staff intend to vigorously enforce late filings and commended staff on their increased vigilance.

In a subsequent hearing, Campbell was found to have issued auditor reports for six publicly traded companies while not registered with the Canadian Public Accountability Board, as required under securities regulation. Campbell was reprimanded by the Commission panel and ordered to disgorge $10,000 in audit fees gains to the Commission.