Regulatory Investigations and Defence

KM defends companies, directors, officers, and employees involved in regulatory and government agency investigations and related enforcement proceedings. Regulatory scrutiny and enforcement activity is increasing along with associated financial and reputational risk. Addressing these risks and navigating these processes requires experienced legal counsel with advanced insight based on dealing with a broad spectrum of regulators from multiple perspectives.

We have interacted with, submitted breach reports, and defended proceedings commenced by provincial securities commissions, the Canadian Investment Regulatory Organization (formerly the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers’ Association), the Competition Bureau, the Office of the Privacy Commissioner, the Financial Consumer Agency of Canada, the Office of the Superintendent of Financial Institutions, the Chartered Professional Accountants of Ontario, as well as other government and law enforcement agencies.

KM’s clients benefit from Susan Kushneryk’s experience as Senior Litigation Counsel for the Ontario Securities Commission and the Canadian Investment Regulatory Organization as well as Sandeep Joshi’s experience as Associate General Counsel for BMO Financial Group’s Canadian banking regulatory legal team. They provide clients with a holistic perspective on dealing with these challenging situations against the backdrop of evolving regulatory expectations and changing business landscapes.

Representative Experience

Our lawyers have dealt with a wide range of regulators and have advised and represented clients on the following matters:

Securities

TeknoScan Systems Inc. and certain directors and officers in defending allegations of fraud and misrepresentations to investors, including a 20-day enforcement hearing before the Ontario Capital Markets Tribunal.

Various companies, audit firms, and individuals in connection with reviews, investigations, and enforcement proceedings regarding registration, compliance, and misconduct issues, including insider trading and material misrepresentations, conducted by provincial securities commissions across Canada and by the Canadian Investment Regulatory Organization.

Berkshire Investment Group Inc. and Berkshire Securities Inc. in connection with the collapse of Portus Alternative Asset Management and related entities, including regulatory investigations across Canada, an investors’ class action, Portus’s receivership and bankruptcy proceedings, and other related litigation.

An energy services company in defending a provincial securities commission proceeding and civil proceedings related to stock option practices.

BMO Financial Group in submitting breach reports and responding to regulatory investigations and enforcement involving provincial securities commissions and the Canadian Investment Regulatory Organization.

A global real estate asset management company in addressing securities regulatory issues related to its exempt market status.

The Ontario Securities Commission and the Canadian Investment Regulatory Organization in investigations regarding potential industry-wide, firm-wide, and individual instances of misconduct in the securities market.

The Ontario Securities Commission in proceedings against Sextant Capital Management Inc. regarding the selling of investment fund units with falsely inflated values, the misappropriation of funds, the failure to deal fairly, honestly, and in good faith, and the failure to maintain proper books and records.

The Ontario Securities Commission in proceedings against Canadian Imperial Bank of Commerce, CIBC World Markets Inc., and HSBC Bank Canada related to asset-backed commercial paper.

The Canadian Investment Regulatory Organization in proceedings against Deutsche Bank Securities Ltd. related to asset-backed commercial paper.

The Canadian Investment Regulatory Organization in proceedings against Barrett Capital Management Inc. for alleged commodity futures trading misconduct.

The Canadian Investment Regulatory Organization in proceedings against Northern Securities Inc. regarding alleged capital deficiency and other issues.

Competition and Consumer Issues

A consumer goods company, a building materials company, and a maritime shipping company in price-fixing investigations under the Competition Act, including the use of the Competition Bureau’s immunity and leniency program.

An automotive parts company and a global electronics company in bid-rigging investigations under the Competition Act.

A ticketing and marketing company and a health and fitness club in misleading advertising investigations under the Competition Act.

An energy waste services company in an abuse of dominance investigation under the Competition Act.

BMO Financial Group in unprecedented, concurrent regulatory investigations by the Office of the Superintendent of Financial Institutions and the Financial Consumer Agency of Canada into sales practices and related organizational and individual misconduct.

BMO Financial Group in submitting statutory consumer protection breach reports and responding to regulatory investigations and enforcement activities conducted by the Financial Consumer Agency of Canada.

Privacy

BMO Financial Group in submitting privacy breach reports and responding to regulatory investigations and enforcement activities conducted by the Office of the Privacy Commissioner.

Search Warrants, Production Orders, and Requests for Information

Companies in responding to search warrants, production orders, and requests for information issued by various regulators and law enforcement.