Insider Trading Through Deductive Reasoning: Canada And The United States Take Different Approaches

Davis LLP Securities & Corporate Finance Bulletin

Introduction

The Ontario Securities Commission and a veteran investment banker, Richard Moore, recently reached a settlement agreement regarding claims by the OSC of improper securities trading by Moore. The OSC alleged that trades in the securities of Tomkins plc made by Moore while he was at CIBC World Markets were contrary to the public interest and that Moore engaged in insider trading and acts contrary to the public interest with respect to trades he made in the securities of HOMEQ Corporation while he was at UBS Securities Canada Inc.

Under his settlement agreement with the OSC, Moore received a reprimand and fines under the OSC's "public interest" jurisdiction, pursuant to section 127 and 127.1 of the Securities Act (Ontario), with respect to the Tomkins trades. It was also determined that Moore's conduct in relation to the HOMEQ trades was contrary to section 76(1) of the Securities Act (Ontario). The