An Alberta court has ruled that two individuals must appear before the Alberta Securities Commission (ASC) to answer its inquiries, even though the ASC may share that information with regulators in the United State.

Madam Justice K.M. Horner of the Court of Queen’s Bench in Calgary ruled in favour of the ASC, which sought an order compelling two people to attend at the ASC for examinations. The respondents sought an order quashing the summons issued by the ASC. According to the judgment, one of the respondents was initially willing to cooperate with the ASC, but decided against it when he learned he was also the subject of an investigation by the U.S. Securities & Exchange Commission, and became concerned that the SEC could make use of his ASC examination.

The judge ruled in favour of the securities commission and against the respondents, and granted an order requiring them to appear.

The court also found that it could not make a determination that the ASC cannot share information with the SEC. “The Supreme Court of Canada has confirmed the importance of assisting other securities regulators in an effort to enforce securities regulation on an international level. Presumably, if it comes to light that Canadian proceedings are not merely regulatory but criminal then the respondents will be provided with protection [under the Act],” it noted.