Disclosure and sharing of sensitive information: Revisiting risk in co‐operating regulatory regimes

Abstract

Purpose

Presentation on legal risks in business cooperation in a regulated sector in Canada.

Design/methodology/approach

The paper reviews Canadian case law and privacy implications for businesses cooperating with regulators and the risk of such cooperation to the regulated scheme.

Findings

The public interest in fostering regulator to law enforcement cooperation creates a potential risk to the regulator's scheme whenever the cooperation creates a risk that the regulator is a mere alter ego to criminal law enforcement.

Practical implications

Case law in Canada considers the scope of regulator compliance functions and the impact of sharing information with criminal investigators. Too much sharing, without concern for the regulated environment may risk regulator's authority to obtain business information absent a pre‐existing independent court authorization.

Originality/value

The paper is valuable to any regulator in a common law jurisdiction.

Citation

Murphy, D. (2006), "Disclosure and sharing of sensitive information: Revisiting risk in co‐operating regulatory regimes", Journal of Financial Crime, Vol. 13 No. 4, pp. 420-441. https://doi.org/10.1108/13590790610707555