The Alberta Securities Commission says it is pleased with a court decision concerning the Albera Auditor General’s planned audit of the ASC.

On Tuesday, the Court of Queen’s Bench in Calgary ruled that a “fair” interpretation of Alberta’s Auditor General Act “means that the Auditor General must have the authority to conduct the review.”

The ASC had balked at that proposal, insisting the audit be restricted by several conditions.

The court decision sets a “sound legal foundation” so that the regulator can co-operate with the Auditor General, the ASC said.

“The ASC will invite [the Auditor General] to . . . discuss the terms of a revised audit plan that reflects the court’s decision,” the ASC said in a release.

The Alberta regulator has been beset this year by allegations of lax enforcement and unprofessional workplace behaviour.

In January, Alberta Finance Minister Shirley McClellan commissioned a report on the issues, which was submitted in late March. The report suggested that some of the allegations were unfounded but was not released.

However, the controversy lingered, and McClellan in April asked the Auditor General to fast-track an audit of the regulator. The ASC resisted, pushing the matter to court