Investors Scrutinizing the Regulators

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Securities Regulation In CanadA

Fox Guarding the Hen House



Presentations to the Finance Committee

(Ontario Standing Committee on Finance and Economic Affairs)



Request to Hon. Gerry Phillips for Government Review

16 March 2004

Response from Hon. Gerry Phillips

19 May 2004

Hon. Gerry Phillips speech to Economic Club of Toronto

"As part of that commitment, we will be recommending to the Legislative Assembly that a committee hold hearings on the Five-Year Review Committee Final Report Reviewing the Securities Act."

23 June 2004



Flashback to August 26, 1988

Report of the Standing Committee of the Ontario
Legislature on Government Agencies

August 26, 1988


Ontario Standing Committee on

Finance and Economic Affairs

Evidence Transcripts




18 Aug 2004



19 Aug 2004



Well, I don't know if you're familiar with the section of the Securities Act that states very clearly that the OSC can require the court to order restitution to a company or individual.  So I would like to ask all of you when Mr Brown or his predecessor made the decision that they wouldn't bother dealing with individuals, and on whose authority did the head of the OSC make that decision?  As I'm aware, there has been no amendment to the Securities Act, has there? Can someone answer that question?

Sandra Gibson, Investor, Ontario


On the basis of our experience, an independent organization with the authority of law is needed to monitor the industry and order financial redress where investors are defrauded or victimized by corporate negligence. In other words, I would ask you to initiate changes to ensure that regulators fulfill their stated objective of protecting the interests of investors in this province.

Gloria Hutton, Investor, Ontario


"You get better consumer protection in Ontario if you're buying a used car"

Whipple Steinkraus, V.P. Consumers Council of Canada


Meanwhile, I scouted for other ways to obtain restitution. I mentioned my letter to Mr McGuinty. He referred me to the Ontario Securities Commission, as did the Ministry of Finance. The OSC referred me to the Investment Dealers Association. From the time I wrote to the OSC, in line with the advice from Queen's Park, until the IDA hearing into what it referred to as "the matter," three years and seven months had passed. I learned that a number of other investors had also complained against our financial adviser. I was surprised, therefore, when IDA concluded that he had been correctly supervised.

Ernest Wotton, Investor, Ontario


"The industry now has a self-reporting system, so claims of wrongdoing sometimes have to be reported to the very people who may be benefiting from the wrongdoing. This is unacceptable. If the complaint is serious and raised to a higher level, it can sometimes be passed along to an industry trade association, which is by the industry and for the industry, and in the end the client or the complaint gets not much satisfaction, in my experience."

Larry Elford, Ex-broker, Alberta


"I have three concerns, and the three concerns are this. The IDA receives complaints routinely. Those complaints deal with, "I lost money. My investment advice was bad. What do I do about it?" Well, the IDA routinely gives them a legal opinion -- "You have no claim because of" -- and provides the reasons why. I've got a problem with that. First of all, they are the industry representative. They don't disclose that they're the industry representative. They're in conflict. Second, they're not lawyers. It's not a lawyer writing the letter, but it's a legal conclusion. Third, they are discouraging the client. These are clients who then come to me, and I've got the letter from the IDA saying that they have a bad claim, and I then settle it with the broker for large money because it was a good claim."

John Hollander, Lawyer, Ontario


SCFEA Presentations/Submissions


Robert Kyle

Ex-Industry, Investor Advocate

Diane Urquhart

Ex-Industry, InvestorAdvocate

Lillian Morgenthau


Whipple Steinkrauss

Consumers Council of Canada

Duff Connacher

Democracy Watch

Larry Elford

Ex-Industry, Investor Advocate

Eugene Elleman

Social Investment Organization

David Yudelman

Tell It

John Hollander

Doucet McBride LLP

Bill Weissglas


Mediation/Arbitration Services Inc.

Joe Killoran

Ex-Industry, Investor Advocate

Sandra Gibson


Gloria Hutton


Robert Verdun

Investor Advocate


Ernest Wotton


Glorianne Stromberg

ex-OSC Commissioner

Jim Roache


Paul Winkler

Trajan Publishing Corporation

Stan Buell

Small Investor Protection Association

Jocelyne Robidoux


J. Edward DeToro


Dr. Joel Fried

Associate Professor of Economics,

University of Western Ontario

Al Rosen

Rosen & Associates

Peter Schnobb



Consumers assail the system

01 September 2004

The OSC swamp

28 August 2004

OSC struggles under load

28 August 2004

Fallacy of a sole securities regulator

26 August 2004

Assante lawsuit bears a closer look

26 August 2004

Separating the judge from the prosecutor

23 August 2004

Stricter rules on mutual funds urged

20 August 2004

OSC doesn't operate in political vacuum

20 August 2004

Alberta key to single securities regulator, says Crawford

19 August 2004

OSC urged to create separate tribunal for securities offences

19 August 2004

OSC needs reform to preserve 'integrity'

19 August 2004

OSC Chair Supports Priority Recommendations at Standing Committee of the Legislature

18 August 2004

Ontario pushes single regulator idea

18 August 2004

Osborne report says OSC should split off adjudicative function

18 August 2004

Report favours independent securities tribunal

18 August 2004

Almost five years later, where's the review?

17 August 2004

Investors want more time at hearing on OSC

16 August 2004

Small investors unhappy with OSC

13 August 2004

Illuminate OSC's inner workings: Parliamentary hearings begin next week

12 August 2004

OSC set to release structural review

11 August 2004

Let the sun shine on regulators

August 2004

Hearings into securities legislation begin Aug. 18

August 2004

Hearings set that could lead to securities system reform

03 August 2004

Province sets Oct. 18/2004 date for report on Ontario regulatory system

19 July 200