Top News

Sep 23 2014

FAIR Canada Announces Disclosure Conference in Partnership with U of T’s CMI

FAIR Canada is pleased to announce that the panelists for our disclosure conference, hosted with the Capital Markets Institute at the University of Toronto’s Rotman School of Management, have been confirmed and that registration is now open. The conference will take place on Tuesday, October 28, 2014, from 8:00 am – 12 pm at Rotman School of Management in Toronto. Please sign up online HERE by noon on October 27, 2014 if you are interested in attending…

Sep 23 2014

Guy Lemoine Appointed to FAIR Canada’s Board at AGM

At the Annual General Meeting (AGM) of the Canadian Foundation for Advancement of Investor Rights (FAIR Canada) held in Toronto, Ontario on September 23, 2014, members elected eleven individuals to the FAIR Canada Board of Directors. New to the Board is Guy Lemoine of Montreal. M. Lemoine is a lawyer, a former vice-chair and commissioner of the Quebec securities commission (1990 – 2003) and former president of its adjudicative body…

Sep 15 2014

Does disclosure actually work?

There are two articles of faith in securities regulation concerning public disclosure of information. The first is that disclosure will level the playing field by reducing knowledge asymmetries. The second is that disclosure allows conflicts of interest to be managed instead of simply forbidden. Underneath all this is a crucial assumption. We assume that if disclosure is thorough enough, plainly-worded enough and sufficiently timely, then investors can and will use the information…

Sep 11 2014

FAIR Canada Comments on the MFDA’s CRM2 Amendments

FAIR Canada has submitted comments on the MFDA”s proposed amendments to its rules to implement the CRM2 Amendments. The amendments provide for pre-trade disclosure of charges and annual reporting of performance and costs and fees incurred, including the amount of payments received by third parties (such as trailing commissions). FAIR Canada recommends that the MFDA rules be substantively…

Aug 25 2014

CSA Continues to Propose Changes that Would Reduce Venture Issuer Governance and Disclosure

FAIR Canada has provided comments to the Canadian Securities Administrators (CSA) in response to the fourth iteration of their consultation on venture issuer governance and disclosure. FAIR Canada continues its warning that regulators should be careful not to reduce the level of disclosure or reduce governance standards. We note that this will result in informational gaps for investors and increase the risks of investing in an already risky venture issuer market. FAIR Canada notes that reduced disclosure and governance will not help improve confidence in the venture capital market…

Aug 25 2014

Robo-advisors might prompt shift to best interests standard

For decades, financial advisors have had access to advanced software that can use know-your-client data to categorize investors and prepare model portfolios for them. Some of these programs also use more sophisticated algorithms designed to help formulate recommendations for specific reinvestment of dividends, rebalancing of client portfolios and tax-loss harvesting on an ongoing basis. What’s new, however, are service delivery models in which these powerful tools are made available directly to clients online…

Aug 21 2014

FAIR Canada Announces New Funding from Regulators

The Canadian Foundation for Advancement of Investor Rights (FAIR Canada) announced today the receipt of significant new funding from both the Ontario Securities Commission (OSC) and the Investment Industry Regulatory Organization of Canada (IIROC). The OSC has provided a $2.5 million contribution toward FAIR Canada’s fundraising campaign. The OSC’s contribution comes from funds collected from monetary sanctions and settlements…

Aug 11 2014

FAIR Canada Makes Recommendations to Protect Canadians from Investment Fraud

FAIR Canada has today released a research report entitled “A Canadian Strategy to Combat Investment Fraud”. The report provides an overview of the types of securities fraud that affect retail investors and attempts to evaluate the Canadian system in place to protect investors from such fraud. FAIR Canada’s report outlines nine recommendations to improve the system to better protect the Canadian investing public from investment fraud, including the need to: improve data collection; conduct more research; better coordinate amongst responsible organizations; identify emerging trends and key threats to investors; articulate clear enforcement priorities…

Aug 06 2014

Neil Gross on Crowdfunding

Neil Gross, FAIR Canada’s executive director, provided insight on the potential risks crowdfunding poses to investors in a television interview on BNN Business Day. He notes that crowdfunding investments will be highly risky, illiquid, and vulnerable to dilution. Mr. Gross notes that FAIR Canada opposes crowdfunding entirely, but that if it is to go forward, among other things, the investment limits for retail investors should be reduced in order to expose Canadians to less risk…

Jul 24 2014

A Profession or Not a Profession?

A recent article by Knut Rostad, president and founder of the U.S.-based The Institute for the Fiduciary Standard, notes that “[e]ssential criteria for the principles and practices of a profession of fiduciary advice can be divided between the “hard” requisites such as education, knowledge and experience, and the “soft,” including communication, character, honesty and transparency…

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