The Supreme Court of British Columbia has denied an advisor’s bid to sue the Investment Industry Regulatory Organization of Canada (IIROC).
In a decision released July 16, the B.C. Supreme Court dismissed a suit from Carolann Steinhoff, a former registered representative at the Victoria branch of Wellington West Capital Inc., which argued that IIROC’s disciplinary case against her represented an injustice.
Steinhoff alleged that the self-regulatory organization conducted a biased disciplinary hearing against her, failed to hand down its penalty in that case (a penalty hearing was held in February), and that IIROC violated the rules of justice by failing to quickly levy a penalty as that prevents her from seeking vindication in the meantime.
B.C. broker violated IIROC rules: panel
IIROC argued that its decisions aren’t directly subject to review by the court, that they are reviewable by the B.C. Securities Commission (BCSC) instead, and that the BCSC’s decision are, in turn, open to judicial review.
According to the B.C. Supreme Court decision, Steinhoff agreed that judicial reviews of IIROC decisions aren’t allowed, but she argued that in her case — where she has been engaged in a long-running battle with IIROC, involving numerous hearings, and complaints about excessive delays — she was hoping that court would be persuaded to intervene as the circumstances of her case created “an element of unfairness so severe” that the court would exercise its discretion to allow the case to go to trial.
However, the B.C. Supreme Court found that it doesn’t have jurisdiction to hear the claim, and it dismissed the case. “The plaintiff’s action is an attempt to evade the scheme of review provided by the legislation. Her unique circumstances not withstanding she must adhere to the legislative scheme,” the court ruled.