FAIR Canada recently submitted its comments in response to the request for comment on the Ontario Securities Commission’s Statement of Priorities for the fiscal year ending March 31, 2011.
Summary of Recommendations
FAIR Canada supports the OSC’s initiative to request comments on its Statement of Priorities at an earlier point in the process so that comments from market participants can be better integrated into the Commission’s planning and budgeting process. Addressing the lack of a strong investor voice in securities regulation was one of the key reasons for the founding of FAIR Canada.
FAIR Canada’s two principal recommendations are as follows:
- Create a Small, Paid Investor Panel. It is FAIR Canada’s view that the OSC needs to take the Investor Steering Committee/Secretariat to the next level or replace it with another structure in order to have a truly effective, transparent and credible mechanism for investor consultation and feedback. FAIR Canada recommends that the OSC create a small, paid investor panel that would consist of eight to ten members representing retail investor and shareholder rights. The OSC needs to create and implement a concrete proposal for the creation of such a panel, including a specific workplan, mandate and timeline for its creation.
- Appoint a Commissioner with a Strong Retail Investor Perspective. FAIR Canada strongly urges the OSC to appoint a Commissioner with a strong retail investor perspective. There is currently an imbalance at the Commission, in terms of influencing OSC decision-making and policy development. Given that the OSC’s primary mandate is investor protection, it is incumbent on the OSC to ensure that the interests of key stakeholders, notably retail investors, are well-represented in senior levels of the organization, including the Commission itself. FAIR Canada continues to be concerned that retail investor representation is lacking in the make-up of the Commission as it is presently constituted.
Read the full submission to the OSC here.
