OSC rules IIROC can pursue trader case

The Ontario Securities Commission has ruled the Investment Industry Regulatory Organization of Canada (IIROC) has the jurisdiction to pursue a hearing in the case of former Scotia Capital Inc. star trader David Berry. Mr. Berry launched a challenge against IIROC predecessor Market Regulation Services Inc. (RS) last year, saying the regulator did not have the authority to pursue allegations he manipulated the sale of new share issues while Scotia Capital was an underwriter. In a decision released yesterday, the OSC dismissed the application, saying the trading rules administered by RS were validly adopted and applied to Mr. Berry when he was an employee of Scotia. Mr. Berry was the head of preferred-stock trading at Scotia before he was ousted from his job in 2005. He has filed a wrongful dismissal suit against the bank, and has denied any wrongdoing.