Proceedings

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Practice Guideline – January 26, 2015
Case Management Timeline for Enforcement Proceedings

(Cross-references: Ontario Securities Commission Rules of Procedure (2014), 37 O.S.C.B. 4168 and Statutory Powers Procedure Act, R.S.O. 1990, c. C.22, as amended)



Preamble
Pursuant to Rules 1.2(3), 1.3, 1.4 and 6 of the Ontario Securities Commission Rules of Procedure (2014), 37 O.S.C.B. 4168 (the “OSC Rules”), the Ontario Securities Commission (the “Commission” or the “OSC”) is issuing the following practice guideline in respect of the Commission’s case management procedures (the “Practice Guideline”).

The Practice Guideline applies to all proceedings before the Commission commenced by a Notice of Hearing issued pursuant to section 127 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Securities Act”) or section 60 of the Commodity Futures Act, R.S.O. 1990, c. C.20 in connection with a Statement of Allegations (“Enforcement Proceedings”).

Effective February 1, 2015, the Practice Guideline will apply to all Enforcement Proceedings before the Commission, including proceedings commenced by a Notice of Hearing issued prior to the effective date of the Practice Guideline:

1. General Principles and Application

1.1. The purpose of this Practice Guideline is to improve the case management procedure at the Commission through the early identification and resolution of preliminary matters.

1.2. At any appearance following the issuance of a Notice of Hearing and Statement of Allegations, a Panel may exercise its discretion under the OSC Rules to waive the time limits for disclosure under Rule 4 of the OSC Rules in accordance with the case management timeline set out in this Practice Guideline.

2. Case Management Timeline for Enforcement Proceedings


2.1. Panels of the Commission will impose a case management timeline for interlocutory appearances in Enforcement Proceedings. The case management timeline will provide a schedule for interlocutory appearances before the Commission and disclosure by the parties prior to a hearing on the merits (the “Merits Hearing”).

2.2. The schedule is set out below and provided in chart format in Appendix A:

  • The First Appearance: The first appearance should occur within four weeks of the service of the Notice of Hearing and Statement of Allegations. At the first appearance, timelines will be set for disclosure of documents and things, disclosure of witness lists and summaries, notices of intent to call an expert witness and any other interlocutory matters, including subsequent appearances.
  • Disclosure by Enforcement Staff: Disclosure of documents and things in the possession or control of Enforcement Staff that are relevant to the hearing should be made to all respondents named in the Statement of Allegations (“Respondents”) no later than 30 days following the first appearance.

    Any requests by any of the Respondents for disclosure of additional documents should be set out in a Notice of Motion to be filed no later than 10 days before the second appearance.

  • The Second Appearance: The second appearance should be held within 120 days following the first appearance. At that appearance, any motions by any of the Respondents with respect to disclosure provided by Enforcement Staff will be heard or scheduled for a subsequent date.

    No later than five days before the second appearance, Enforcement Staff will make disclosure of their witness lists and summaries and indicate any intent to call an expert witness, and will provide to the Respondents the name of the expert and state the issue on which the expert will be giving evidence.

  • The Third Appearance: The third appearance should be held within 60 days following the second appearance.
    No later than 30 days before the third appearance, unless the Respondents make a motion to strike one or more significant, material allegations of the Statement of Allegations, the Respondents will make disclosure of their witness lists and summaries and indicate any intent to call an expert witness, and will provide to Enforcement Staff the name of the expert and state the issue on which the expert will be giving evidence. Any motion to strike by the Respondents shall be heard promptly.

    Any motions the parties wish to bring in advance of the Merits Hearing will be held on the date of the third appearance or scheduled for a subsequent date. Motion materials should be filed 10 days in advance of the third appearance.

    Dates for the Merits Hearing and for the provision of expert affidavits or reports, if any, will be set.
  • Final Interlocutory Appearance: A final interlocutory appearance will be held not less than 30 days prior to the commencement of the Merits Hearing.

    By no later than 10 days before the final interlocutory appearance all parties will have delivered to every other party copies of documents which they intend to produce or enter as evidence at the Merits Hearing (the “Hearing Briefs”).

    At least five days before the final interlocutory appearance, the parties will file with the Office of the Secretary copies of indices to their Hearing Briefs.

    At the final interlocutory appearance, the parties will advise the Panel of any issues with respect to the authenticity or admissibility of documents in the Hearing Briefs. Any outstanding interlocutory issues will be addressed.
3. Adjournments and Scheduling of Appearances

3.1. In cases for which the case management timeline has been imposed by a Panel, adjournments will not be readily granted.

3.2 Once dates for the Merits Hearing have been set, adjournments or amendments to the Merits Hearing schedule will be granted only in exceptional circumstances.

4. Consequences of Non-Compliance

4.1. A party who fails to disclose documents or things, witness lists and summaries or expert affidavits or reports in accordance with the case management timeline set by the Panel may not introduce such evidence at the Merits Hearing without leave of the Panel.

5. Power of the Panel

5.1. The Practice Guideline does not restrict in any way the discretion of a Panel to make rulings as it deems appropriate in the circumstances, including rulings as to timelines for exchange of information or scheduling of interlocutory appearances in any Enforcement Proceeding


Appendix A: Case Management Timeline