Top News

Apr 13 2015

Want strong investor protection? Become ‘Regulators Without Borders’

Most people don’t appreciate how complex investment regulation really is, or what a diverse ecosystem of agencies we’ve got overseeing everybody’s money. For example, few Canadians realize that our country’s constitution prevents provincial securities regulators from governing some investment products sold by banks. There are federal banking regulators responsible for […]

Apr 01 2015

FAIR Canada’s Comments on the Proposed Streamlined Prospectus Exemption for Rights Offerings

FAIR Canada has provided comments to the CSA regarding proposed amendments to the existing prospectus-exempt rights offering regime. We support regulatory efforts to improve the ability of reporting issuers to raise capital in a cost efficient manner that, at the same time, provides adequate protection to investors. FAIR Canada supports […]

Mar 31 2015

CSA and OSC Defy Logic with Changes in Regulation of the Exempt Market

The Minimum Amount (MA) Exemption: FAIR Canada supports the CSA’s decision to revise the MA Exemption so that individuals can no longer use it. We commend the CSA for recognizing that “…the amount invested is not a good proxy for sophistication or the ability to withstand financial loss for individual […]

Mar 27 2015

Crowdfunding portals need to get their own startups right

We don’t know yet whether Canadian securities regulators will permit equity crowdfunding to go forward. They’re still thinking about it, pondering whether it’s a good idea to let startup companies and small enterprises raise capital by selling shares to the public over the Internet without a prospectus. The regulators are […]

Mar 24 2015

How committed are we to preventing investment fraud?

March is Fraud Prevention Month, so Canadians are getting loads of information to help them avoid being scammed. That’s terrific. It’s critically important to educate the public — and empowering average investors to protect themselves is both desirable and necessary. However, it’s also insufficient. We can urge everyone to walk […]

Feb 27 2015

OSC Issues Investor News Notice about Structured Notes

Following the CSA Staff Notice on Structured Notes the OSC has issued an Investor News Bulletin “Investing 101: Structured Notes“. This is similar to the SEC’s Investor Bulletin on Structured Notes issued this past January. The latest OBSI Annual Report notes that structured product complaints are on the rise.  We therefore welcome steps to improve investor decisions […]

Feb 03 2015

Regulators Turn Down CRM2 Delay Request, With Only Minor Adjustment

The Canadian Securities Administrators decided to hold firm on the July 15, 2016 date for implementation of the cost and performance reporting requirements. FAIR Canada is pleased the CSA has decided that investors will not have to wait longer to get the crucial information that will be in these reports. We also applaud the CSA for its decision to leave the definition of book cost unchanged and, as we recommended…

Jan 28 2015

OSC Issues Staff Notice to Improve REIT Distributions Disclosure

FAIR Canada is pleased to see that the Ontario Securities Commission has issued a Staff Notice providing guidance to issuers of REITs to improve their disclosure when distributions exceed cash flows from operations. It is important for investors in REITs to know when they are receiving a return of capital (of their own capital) versus a return on capital (income generated from their investment) and to be able to assess the sustainability…

Jan 22 2015

FAIR Canada Objects to IIAC’s Request for Delay in CRM2

At the request of the CSA CRM2 Committee, FAIR Canada has submitted a letter opposing IIAC’s request for a delay in the implementation of CRM2. FAIR Canada is of the view that the facts and arguments put forward by IIAC do not establish that there is insufficient time to successfully implement CRM2’s requirements within the existing timeframe. It is not enough to show that some problems have arisen causing delays on some fronts. Absent clear demonstration that additional resources cannot…

Jan 19 2015

If There Must Be an OM Exemption, Make it Safer

Bringing the offering memorandum (OM) exemption to Ontario presents risks for investors. It’s doubtful those risks can be truly mitigated. But if regulators decide to go forward with this initiative, they should at least adopt whatever measures they can to ensure the OM exemption doesn’t do more harm than good. The potential for harm has been amply demonstrated in provinces that allow the use of OMs. Regulators have repeatedly found widespread, serious defects in the OMs being used. They’ve also found extensive non-compliance with basic practice requirements by…

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