The Supreme Court today ruled to deny a request by investor Christopher Morgis to amend his lawsuit to include the Investment Dealers Association of Canada as a defendant.

The IDA said it welcomes the court’s ruling.

“Today’s court ruling affirms the IDA’s position in this matter. Regulators must be free to regulate fairly and effectively in the public interest without fear or concern that they will be subjected to legal action,” said Paul Bourque, senior VP, Member Regulation Paul Bourque.

Today’s decision follows a recent decision by the Ontario Court of Appeals confirming that while regulators have an obligation to act in the broader public interest, they do not have a duty of care to individual clients of the organizations that are regulated. Consequently, individuals do not have grounds for action against regulators who have acted in good faith and in the public interest.

Morgis has sought to add the IDA and several executives of the self-regulatory organization as defendants in his suit against defunct brokerage house Thomson Kernaghan & Co. Ltd.