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A Sino-Panel factory is seen in Gaoyao, Southern China on June 28, 2011.
A Sino-Panel factory is seen in Gaoyao, Southern China on June 28, 2011.
(Adam Dean For The Globe and Mail)

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Sino-Forest probe appears to spare underwriters

The day the Ontario Securities Commission dropped its bombshell of allegations against Ernst & Young LPP over the accounting firm’s handling of scandal-plagued Sino-Forest Corp.’s books, the regulator also said it did not expect to pursue anyone else.

That means that the Bay Street underwriters that helped the Ontario-based, Toronto-listed Chinese timber firm raise $3-billion in capital from investors are unlikely to face any regulatory action – despite recent warnings from the OSC that so-called gatekeepers need to better vet companies from China and other emerging markets.