By SINCLAIR STEWART
Thursday, January 13, 2005
The Ontario Securities Commission has given up its attempts to block the
release of an
that contains stinging criticisms of the
Investment Dealers Association of Canada, a national self-regulatory
organization for the brokerage industry.
The OSC, which completed the review four years ago, following a
comprehensive audit of the IDA, officially dropped its court challenge
late last month.
The report paints a picture of an organization adrift, plagued by low
employee morale, a logjam of enforcement cases, and policies that were
either vague or non-existent.
"It is staff's view that there is a need for significant improvement in
the IDA's corporate governance and organizational structure and in the
enforcement department," the OSC said in its assessment of the
Joseph Oliver, the IDA's president, said the organization has addressed
the OSC's concerns, added staff and resources, and created new performance
"We took immediate action to address the deficiencies noted in the
report," he said, adding that the problems mentioned in the July, 2000,
report date back six or seven years.
The OSC was reluctant to divulge the contents of its audit because they
would be potentially embarrassing for the IDA and could harm the
relationship between the two regulators.
Eric Pelletier, a spokesman for the OSC, said the securities watchdog
decided to withdraw its challenge because of the strain on time and
resources. Given the interest in the matter, he added that the OSC plans
to publish the results of similar reviews in the future.