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BCSC Granted Administrative Powers Beyond U.S. SEC, Strengthening Regulatory Process

2024-07-16 00:00:06.444000

The B.C. Securities Commission (BCSC) has been granted administrative powers that exceed those of the U.S. Securities and Exchange Commission (SEC). This expansion of administrative powers in Canada is attributed to the country's stronger constitutional foundations for administrative tribunals compared to the U.S. The BCSC used its new enforcement tool to fine a Langley asset manager $12,000 without a hearing, demonstrating the expedited regulatory process and ability to collect unpaid penalties. In contrast, the Supreme Court of the United States ruled that the SEC had overstepped its constitutional boundary by holding administrative hearings for minor civil securities fraud allegations, emphasizing the right to a jury trial in federal court. The U.S. effort to limit administrative power can be seen as political, while the B.C. government seeks to strengthen it as a response to the lack of criminal prosecutions for fraud. The absence of a national securities regulator in Canada has resulted in fragmented fraud prosecutions across provinces [84938eb3].

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