New Brunswick Securities Commission

Securities regulator took action to protect investors in 2008 (09/01/29)

NB 81

Jan. 29, 2009

SAINT JOHN (CNB) - A total of 41 individuals and companies were banned from capital markets in the province by the New Brunswick Securities Commission (NBSC) in 2008. The NBSC ordered $687,500 in administrative penalties as well as $66,034 in costs that year. The commission released these figures today.

In 2008, the NBSC began 45 investigations and concluded 40 cases against individuals or firms that violated securities regulation.

"The NBSC takes an active role in compliance and enforcement to ensure the integrity of our capital markets," said Rick Hancox, NBSC executive director. "We want investors to know that there is a local regulator that takes action against those who defraud New Brunswickers."

Individuals and companies wanting to deal or advise in securities must be registered with the commission. This ensures that those selling to or advising investors about securities meet minimum qualifications. Companies offering securities must also provide enough information for the investor to make an informed decision.

Recent changes to the Securities Act give the NBSC authority to help investors get their money back. In 2008, the NBSC issued an order against an individual directing that $160,000 of funds obtained through illegal activities be turned over to the commission so that it could be returned to investors.

In addition, the NBSC issues orders to protect investors from fraud artists working from outside the province. In 2008, the commission issued four reciprocal orders to 11 parties; the orders were based on actions taken in other jurisdictions.

Investor protection is the top priority at the NBSC. Along with releasing enforcement statistics for 2009, the NBSC recently launched its annual Invest in Knowing More media campaign. The campaign focused on informing New Brunswickers about investment fraud and the need to report any suspicious activity to the NBSC.

Also today, the Canadian Securities Administrators (CSA) released its 2008 enforcement report, highlighting enforcement activities across Canada. The report provides statistics and case summaries that illustrate enforcement work by CSA members. The report is available on the CSA website as well as the on the NBSC website.

The commission is the Crown corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets, as well as confidence in those markets.


MEDIA CONTACT: Wendy Connors-Beckett, senior communications specialist, New Brunswick Securities Commission, 506-643-7745, 1-866-933-2222, e-mail,