A hearing panel of the Investment Dealers Association of Canada has determined that it did not have jurisdiction to proceed with a disciplinary hearing against Vancouver-based Global Securities Corp. and ordered the hearing be stayed.

The panel’s written decision was released October 1.

The IDA had alleged that between March 1999 and February 2001, Global failed to properly supervise the account opening and transactional activities of its registered representative, Stephen Brook Toban, with respect to as many as 35 accounts for United States resident clients and the deposit and transfer of cash and shares to and from those accounts.

The panel found that the latest of the alleged violations occurred on February 26, 2001, and that the notice of hearing was issued on May 14, 2007.

The panel noted that courts have consistently found that the IDA’s jurisdiction is founded on its contract with its Members.

The panel went on to find that :the IDA’s right to discipline is a contractual right enforced by an action in contract and is therefore, an ‘action’ as contemplated by section 3(5) of British Columbia’s Limitation Act.”

The panel also found that, in B.C., “the discoverability principle does not apply to the limitation period for disciplinary proceedings brought for alleged violations of the IDA’s by-laws, regulations and policies.”

The panel concluded that because the alleged violations occurred outside the six-year limitation period as set out in the Limitation Act, the IDA was statute-barred from proceeding with the disciplinary hearing.

On October 30, the IDA requested a hearing and review before the B.C. Securities Commission for an order to quash the decision of the hearing panel.

A copy of the panel’s written reasons is available on the IDA’s Web site.