DISCOVERY-TYPE PROCEDURES IN SECURITY FRAUD PROSECUTIONS

Abstract

This article attempts to describe how the structure of securities regulation facilitates more effective procedures, from the Crown’s view, than pre-trial examinations for discovery. The benefits derive from the investigative powers of securities commissions, potential appointment of a Royal Commission and cooperation of self-regulatory organizations within the industry, which expand the techniques for criminal discovery to which securities commissions may resort. The author explains the scope of these techniques by reviewing the powers open to provincial securities commissions including registration and disclosure requirements, regulatory sanctions, the power to appoint an investigator and the investigator’s power and the secrecy requirement. He then considers the constraining effect on a commission’s authority, of the procedural requirements in securities legislation and rules of natural justice. Finally, he examines the availability of investigation results to be used in subsequent proceedings.