An appeal of a decision of the Ontario Securities Commission was dismissed as the Court held that the decision of the Commission was reasonable

Administrative law – Stock brokers – Disciplinary proceedings – Penalties – Decisions of administrative tribunals – Investment Dealers Association – Rules and by-laws – Judicial review – Standard of review – Reasonableness simpliciter

Derivative Services Inc. v. Investment Dealers Assn. of Canada, [2005] O.J. No. 2118, Ontario Superior Court of Justice, May 25, 2005, R.T.P. Gravely, J.D. Carnwath and P.T. Matlow JJ.

The Investment Dealers Association (the “IDA”) of Canada found Derivative Services Inc. and M.K. guilty of failing to provide documents and information for an investigation of their conduct contrary to a bylaw of the IDA. The IDA’s decision was appealed to the Ontario Securities Commission which agreed with the reasons of the IDA. The Appellant’s appealed to the Ontario Divisional Court.

The Court held that the standard of review of the decision of the Commission was that of reasonableness. The Court further found that the decision of the OSC was reasonable in every way. The appeal was therefore dismissed and the decision of the OSC was confirmed.

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