CSA Releases Annual Enforcement Report

On June 26, 2019, the Canadian Securities Administrators (CSA) released its annual enforcement report (the Report) titled “Evolving Securities Enforcement for a Digital World”.

The Report largely focuses on the CSA’s activities in enforcing and deterring misconduct in the digital economy. It seems likely that this space will be the focus of enforcement activities going forward.

Another focus of the Report is the CSA’s efforts to collaborate with and bring together regulators across global jurisdictions, to share best practices and align on enforcement priorities.

The Report presents the following enforcement highlights from fiscal year 2018/2019:

  • 100 cease-trade and asset-freeze orders were issued

  • 200+ public inquiries were received by NASAA from Operation Cryptosweep

  • CSA members provided formal assistance to one another in 42 cases

  • 46 investor alerts were issued

  • 11 individuals received a total of 12.7 years in jail terms for quasi-criminal cases

  • 12 offenders received jail sentences for criminal cases for a combined total of 36 years of jail time

  • 63 individuals were banned from participating in the Canadian capital market

  • 83 files were referred among the Canadian jurisdictions for further action

  • Penalties of $24 million+ were imposed in fraud cases

  • Data scientists, analysts and blockchain specialists were hired

You can read the Report here.

DISCLAIMER: This post is intended to convey general information about legal issues and developments as of the date above. It does not constitute legal advice and must not be treated or relied on as such.