Thursday, January 13, 2005
After years of fighting to keep a scathing audit of the Investment Dealers
Association private, the Ontario Securities Commission has released the
audit, which the OSC completed in July, 2000, found "there
is a need for significant improvement in the IDA's corporate governance
and organizational structure and in the enforcement department."
It found the IDA lacked a formal process for evaluating the effectiveness
of its board. Also, the IDA's enforcement department faced a backlog of
cases and personnel resources seemed "to be stretched in all departments,"
the audit found.
Despite a freedom of information request from the public, the OSC battled
to keep the audit quiet, arguing it was prepared with the understanding
that its findings would never be publicized.
The OSC appealed decisions by the office of the Information and Privacy
Commissioner of Ontario to release the audit and pressed forward with a
judicial review of the situation.
Yesterday, however, Eric Pelletier, spokesman for the OSC, said the
regulator decided "with the passage of time and the resources that would
be required, that we would discontinue the judicial review we had under
It was also believed that disclosing the report could have impacted the
relationship between the OSC and the IDA, Mr. Pelletier said.
In the future, results of such reports will be made public, he said.
The 2000 audit also found that hiring talented staffers was problematic at
"During discussions with senior management and review of board minutes, it
was noted that the IDA has difficulty attracting and retaining
professional staff," the audit states. Base salaries and incentives were
found to be problem areas.
Joe Oliver, the IDA's chief executive, said yesterday the association has
since remedied the "vast bulk" of the issues identified by the OSC. "We
took action with respect to personnel and we made a number of changes in
form and changes in substance," Mr. Oliver added.