Court affirms constitutionality of BCSC's power to seek contempt charges

VANCOUVER, BC, June 30, 2023 /CNW/ - The Supreme Court of British Columbia dismissed a constitutional challenge to the B.C. Securities Commission (BCSC)'s power to seek consequences for not cooperating with an investigation.

The decision stemmed from the BCSC's attempt in 2020 to question Harjit Gahunia and Ranvir Brar as witnesses in an investigation. Gahunia and Brar refused to comply with the summonses, so the BCSC applied under B.C.'s Securities Act for an order that the witnesses are in contempt. If a court finds that someone is in contempt, it can impose incarceration and fines.

Gahunia and Brar challenged the BCSC's application for contempt, contending that the Act, by allowing such applications, conferred upon the BCSC a power that belonged solely to the court, and violated their rights under the Canadian Charter of Rights and Freedoms. Gahunia and Brar also argued that the BCSC, in seeking contempt charges from the court, was obligated to disclose the complete details of its investigation.

The court disagreed, saying that the Act's provision for a contempt application is not unconstitutional, nor overly broad or vague, and that the only disclosure required in a contempt proceeding is for evidence of a person's alleged refusal to cooperate.

The court said compelled testimony is a valid tool to achieve effective regulation of the securities market, and "the power to compel testimony is meaningless unless there is an ability to seek enforcement for failure to comply."

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
  
  
• A dynamic and competitive securities industry that provides investment opportunities and access to capital.

Learn how to protect yourself and become a more informed investor at www.investright.org.

SOURCE British Columbia Securities Commission