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FAIR Canada Comments on OSC Statement of Priorities

On Monday June 3, FAIR Canada provided comments to the Ontario Securities Commission (OSC) that were supportive of its many investor protection-focused priorities, including the creation of the Office of the Investor, examination of a best interest standard and review of mutual fund fees.

FAIR Canada’s comments also support the OSC’s priority to deliver effective compliance and enforcement and the early detection of illegal securities-related activity. FAIR Canada urges the OSC to focus on the quality of capital formation rather than the amount of capital raised and increased accessibility when assessing potential prospectus exemptions, including the proposed equity crowdfunding proposal and offering memorandum proposal.

FAIR Canada commented on the OSC’s draft proposed action to improve cost-benefit analysis in OSC rule proposals, recommending a balanced approach to cost-benefit analysis in OSC rule proposals and encouraging the OSC to consider the distribution of costs and benefits in any cost-benefit analysis.

FAIR Canada also recommends that the OSC review the regulatory framework for exempt market dealers and portfolio managers given the widespread non-compliance with existing rules as demonstrated by the OSC’s recently published compliance report.

FAIR Canada provided suggestions of additional issues it would like to see addressed in the final Statement of Priorities, including: a whistleblower program, misleading marketing and advertising; SRO oversight and compensation coverage; retail investor-representative Commissioners; an examination of leverage; introduction of substantive regulation to address current abuses in the sale of group scholarship plans; extension of fund facts to other investment products; conflicts of interest at the TSX; and a national registration database.

 

June 11, 2013