Alberta Court of Appeal upholds ASC's power to compel and share evidence

CALGARY, Jan. 14, 2016 /CNW/ - The Alberta Court of Appeal has upheld the constitutional validity of Securities Act (Alberta) provisions that allow the Alberta Securities Commission (ASC) to compel information during a regulatory investigation and provide it to foreign agencies.  

The appellant, Scott Gerard Beaudette, claimed that the requirement to provide information concerning his securities activities in North America, coupled with the possibility that the ASC might share that information with other state authorities, would infringe on his right to liberty as guaranteed under section 7 of the Canadian Charter of Rights and Freedoms. Beaudette also argued that the extraction of information and documents is an unreasonable search and seizure under section 8 of the Charter.

In 2012, the ASC served Beaudette with a Summons requiring him to produce documents and to attend an examination as part of an ASC investigation. Mr. Beaudette refused to attend his examination, claiming the ASC would not provide written assurances that his evidence would not be shared with U.S. regulatory or law enforcement agencies without prior notice to him. In response to an ASC application in Court for his contempt, Mr. Beaudette then filed an application challenging the constitutionality of the ASC powers to compel evidence and share it with other agencies.

"The Court's decision to uphold these legislative powers is critical to our continued ability to cooperate with other agencies in delivering effective investigations," says Cynthia Campbell, Director, Enforcement. "It should be understood that, when appropriate, these powers can and will be used to protect investors and the Alberta capital market."

A copy of the decision is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws.  It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission

For Media Inquiries: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488