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Significant court ruling smooths path to pursue cases of illegal insider trading in Ontario

Higher court sides with the Ontario Securities Commission on a ‘crucial’ element of insider trading cases.National Post

A significant court decision has smoothed the path for Canada’s largest capital markets watchdog to pursue cases of illegal insider trading.

The Ontario Court of Appeal sided with the Ontario Securities Commission last week — overturning a lower court decision — on how OSC tribunals determine whether someone is in “in a special relationship” with a company at the heart of an insider tipping or trading case.

“It is significant,” Anita Anand, a law professor at the University of Toronto, said of the court decision, which was the first time the higher court had considered and ruled on a “crucial” element of insider trading provisions.