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BC Securities Commission Rules In LOM's Favour
Hamilton, Bermuda: 13th January 2005 - The BC Securities Commission has ruled in LOM's favour, and has dismissed the BCSC staff's request for consideration of penalties against LOM and its executive officers. The ruling noted that "LOM has been cooperative throughout the process", and that "the evidence shows that LOM not only responded promptly at every stage of the way, it took the initiative in following up with Commission staff and with its local authorities to try to move things along."
While the ruling was entirely in LOM's favour, the panel did raise a new issue in the ruling - specifically whether the Canadian brokerages LOM deals through should be required to obtain disclosure of beneficial ownership of LOM's underlying customer accounts as a condition of trading. They have asked for written comments to be submitted by January 31st.
This appears to be the result of some confusion between the requirements for a private client account with a Canadian brokerage firm and an omnibus institutional account with a Canadian dealer. This issue is not specific to LOM; such a requirement would apply to all non-Canadian securities firms trading in Canadian markets via omnibus institutional accounts. Clearly the Canadian brokerage industry does not believe that there is such a requirement, as they have to date not required such information.
LOM is very pleased that the BC Securities Commission has ruled in our favour. We feel, as did our lawyers, that this hearing should not have been initiated by the Commission's staff in the first place, and we are grateful that this matter has been resolved.