On April 7, 2009 the OSC appeared before the Standing Committee on Government Agencies where Chair David Wilson made a presentation responding to stakeholder submissions to the Standing Committee in its review of the OSC.  The OSC also filed a written Submission in Response to the Stakeholder Presentations made to the Standing Committee on February 23, 2009.

Firstly, we are pleased that the OSC responded to the recommendations in the stakeholder submissions. 

Secondly, we are pleased that the OSC (at least in principle) supported FAIR recommendations on retail investor issues.  The OSC stated that it is “actively engaged in a rigorous exercise to identify the most effective ways to obtain investor input and to address investor interests”.  The OSC announced that it is establishing an Investor Secretariat as a coordinating body within the Commission to better identify and address issues of concern to investors.

Our proposal for retail investor representation on the Commission (i.e. OSC board of directors) in the FAIR submission may not have sufficiently clear as the OSC appears to have misunderstood our proposal.  The OSC considered the proposal inconsistent with the Securities Act and the OSC governance charter.

In its advertisement to fill three vacancies, the OSC expressly allocated one position to a listed company representative.  (The other two positions were allocated for an investment banker and a lawyer.)  All FAIR is seeking is the appointment of someone with a retail investor perspective – this is no different from what the OSC expressly proposed for listed companies.  The person would, of course, need to meet the same rigorous qualifications in terms of expertise, experience and reputation for integrity as other Commissioners.  The person would also have the same duties under the statute and governance charter as any other Commissioner.  FAIR will continue to press the OSC for the appointment of one Commissioner who would bring the retail investor perspective to the OSC board.  Clearly, having the retail investor perspective can help the board better “address investor interests” and contribute in a positive way to OSC decisions.

Click here to view full submission from FAIR Canada on February 23, 2009.