Ken McEwan, K.C. and Laésha Smith successful in Court of Appeal in Securities Act freeze orders case

Ken McEwan and Laésha Smith were successful in the Court of Appeal arguing that asset freeze orders under the Securities Act, R.S.B.C. 1996, c. 418 are subject to threshold evidentiary standards. The Court of Appeal concluded that before a s. 151(1)(a) asset freeze order is issued, there must be a preliminary assessment of the basis for the proposed investigation to determine whether there is a “serious question” that the investigation could show breach of the Act giving rise to financial consequences. On review of an order, the executive director must establish that the evidence continues to satisfy the serious question threshold. The full reasons of the Court of Appeal can be found here.