Stikeman Elliot was last week barred from defending Credit Suisse First Boston (CSFB) against accusations of violating trading rules because of a conflict of interest.
Market Regulation Serv-ices (RS) asked a regulatory panel to remove Stikeman as it had previously advised the Toronto Stock Exchange (TSE) on the creation of RS.
The hearing concerned allegations that two CSFB employees had violated trading rules in connection with a $251m (£132.7m) trade in BCE shares in April 2003.
Stikeman provided initial advice to the TSE on the structure of RS, then raised issues of lack of independence against it, bringing into question the firm’s own initial advice and causing the conflict.
“We are disappointed with the decision,” a CSFB spokesperson said. Stikeman was unavailable for comment.