KPMG’s $40 Million Bridging Finance Battle Is Far From Over
The legal battle between the Ontario Securities Commission and accounting giant KPMG over its handling of Bridging Finance is moving forward with a Capital Markets Tribunal order.
The battle between the OSC and KPMG may be the most important litigation in the Bridging Finance Inc. scandal. The Big Four accounting firm is facing $40 million in fines from the OSC, which alleges that KPMG “failed to perform fundamental audit procedures over the most critical aspect of the financial statements, the valuation of the loans held within each of the funds.”
KPMG has dug in for a fight with the OSC. Alongside a categorical denial of any wrongdoing, the firm is positioning itself for a long legal battle to avoid these fines. The latest chapter played out on September 2, 2026, with the next court date being set and the court making requests of KPMG.
What happened in the latest OSC vs. KPMG hearing?
On September 2, 2026, the OSC and KPMG appeared in a hearing held by the Capital Markets Tribunal to discuss next steps in the case. After, the tribunal ordered KPMG to serve a list of witnesses for the next hearing alongside a summary of the witnesses’ expected testimony. It also called upon KPMG to “indicate any intention to call an expert witness, including providing the expert’s name and the issues on which the expert will be testifying.”
These materials must be provided by 4:30 p.m. on December 15, 2026. Another case management hearing is scheduled for January 12, 2027. That will be the third case management hearing between KPMG and the OSC.
While this is a standard step in enforcement cases, its relation to the Bridging Finance scandal raises the stakes.
The shocking and sudden collapse of Bridging Finance Inc. seemingly served as a wake-up call regarding the state of private credit in Canada and around the world. The firm, which once commanded a $2 billion private credit platform, folded quickly after allegations of misconduct involving its ownership group surfaced. This included fraud and misappropriation of investor money by owners David and Natasha Sharpe, and co-owner Gary Ng admitting to “paying bribes” to acquire a piece of the company.
The scandal increased scrutiny on the industry and led to a bevy of legal actions against key figures in the company.
What’s next for the OSC-KPMG case on Bridging Finance?
The OSC and KPMG will do another video hearing with the Capital Markets Tribunal on January 12, 2027. That doesn’t mean the case is set to close, however.
Following this, other case management hearings are likely to occur. Between those hearings will be periods of preparation related to documentation, evidence and expert witnesses, as well as potential disputes regarding admissibility. After the case management hearings come the merits hearing, which is effectively the trial between the two sides.
Regardless, that January 12 hearing will establish a significant portion of the remaining schedule for the case and the timetable for its conclusion. Combine this with how there are continued legal proceedings against the Sharpes and Gary Ng and the Bridging Finance book won’t be closed anytime soon.
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