Oasis: The Test For OSC’s Public Interest Power

Our separate bulletin on the full merits decision is found here.

On July 21, the Capital Markets Tribunal released its decision in Oasis World Trading Inc. (Re)¹. The Tribunal addressed several important issues, including the test for making an order in the public interest—in the context of an enforcement proceeding—where there is no breach of Ontario securities law. The decision represents a significant development in the Tribunal’s public interest jurisprudence.

What you need to know

• A two-part test. The Tribunal will apply a two-part test to determine whether to make an order in the public interest absent a contravention of Ontario securities law. The Tribunal must be satisfied that the impugned conduct (a) undermined the animating principles of securities law, and (b) caused an effect with a public dimension. This is the same test that applies in the context of disputes between private parties (e.g., a merger or other contested transaction).