B.C. Securities Commission Issues First Administrative Penalty Under New Regime

On November 17, 2023, the B.C. Securities Commission (the BCSC) issued a $12,000 administrative penalty to Capstone Asset Management Inc. (Capstone) for alleged contraventions of sections 12.5(2) and 11.1(1) of NI 31-103. This marked the first administrative penalty issued by the BCSC under its new enforcement tool — Administrative Penalties Issued by Notice (APIN) — since its introduction on April 26, 2023.

As we reported here, the APIN regime was created to strengthen the BCSC's enforcement powers and streamline processes by providing a mechanism for dealing with less serious securities contraventions. Under section 162.01 of the Securities Act, R.S.B.C. 1996, c. 418 (the Act), the executive director may provide a written notice requiring a person to pay an administrative penalty if, based upon information from a review, investigation or any source, the executive director considers that a person has contravened the Act, regulation or a decision of the BCSC or