Need for Regulators to Obtain All of the Important Evidence

A regulator’s duty of disclosure applies only to the information it has. If a practitioner wishes to obtain evidence from a third party, it has to bring a motion for production. However, where the information is important to the case, the regulator takes a risk in not obtaining it themselves. In Kawula v Institute of Chartered Accountants of Saskatchewan, 2017 SKCA 70, an accountant was disciplined for not commenting, in her capacity as an auditor, on materially misleading financial statements. Throughout the proceedings Ms. Kawula attempted to obtain a copy of a report from another accounting firm which had looked into the issue. A number of participants, including the complainant and the tribunal, had prevented her from gaining access to it until well after she had been found guilty of professional misconduct. In fact a summary of the report, which later turned out not to have been fair and complete, had been admitted into evidence.

Ms. Kawula’s diligence paid off. She eventually obtained the report and persuaded the Court to receive it as fresh evidence. The Court found that it was relevant to the issues (primarily that Ms. Kawula had not been provided with all of the information when conducting her audit) and that it could have altered the outcome of the hearing. The Court directed a new hearing be held. The Court suggested that this result could have been avoided if the regulator had made more strenuous efforts to obtain the report earlier.

More Posts

The Right to Rebut?

Many regulators frequently provide a copy of the registrant’s response to a complaint to the complainant for comment. Doing so can assist in providing the

Registration Runaround

A concern for regulators arises when applicants for registration, who are practicing elsewhere at the time, foresee disciplinary issues developing in their existing jurisdiction. A

Right-Touch Regulation Redux

Perhaps the most consequential document in professional regulation in the English-speaking world this century is Right-Touch Regulation published by the UK oversight body, the Professional

Reason Writing Omissions

Writing reasons for a regulatory decision is not easy, especially for non-lawyers. An administrative body’s reasons are the primary basis upon which a court will