SECURITIES (2004 – Revised 2005)

 

There is no doubt that the world is becoming a global economy with the ease of trade from goods to securities. Chamber members in the Securities industry have noted an increase in due diligence and paperwork which has slowed the speed of client transactions. Unfortunately, the due diligence process has not had the desired effect of reduced abuse or unscrupulous activity. With this in mind it is critical that a country (Canada) have a securities system in place that will be open to scrutiny and be free from dishonest activity.

 

In Canada, each Province and territory maintains its own Securities Commission to regulate brokers and to enforce violations to the Securities Act in the province. This is done through panels and not courts. As such, the Commissions have limited powers granted by statute. In addition to the provincial regulators, there is a federal regulatory body that looks after international rules as well as oversees national issues and regulations.

 

Unfortunately, this system does allow for unscrupulous activity by brokers or Insurance Agents (some not registered under the Investment Dealers Association (IDA), or Mutual Fund Dealers Association (MFDA)). In addition, the products sold and not regulated by the MFDA such as charitable donations, limited partnerships, private mortgages or some private placements in private companies or other entities have resulted in many uncontrolled investments that have been used by many to profit themselves over the investor.

 

THE CHAMBER RECOMMENDS

 

That the provincial governments increase the powers of the Securities Commission to address all violations for breaches of the Securities Act.