Thursday, 23 June 2016
BC SECURITIES COMMISSION OWNED BY THE BANKS AND THE TMX?
Provincial Securities Regulators and their Corporate Stakeholders
For reference most of this brief is written using the BCSC as a specific example simply because that is where my experience in dealing with the corrupt regulatory regimes in Canada lies.
This problem is a deep and complex problem and to gain the proper grasp of what is happening one needs to understand that we are not simply up against these beuracratic Regulatory Commissions and the Finance departments that control them. The real opposition to change comes from what the BCSC itself terms as 'stakeholders'. The 'stake' held is not revealed on the BCSC website to my knowledge however there are relationships alluded to here http://www.bcsc.bc.ca/About_Us/Stakeholders_and_Partners/.
In addition some details on the working relationships between private corporation CDS Inc. (Clearing Depository Systems – owned by TMX Group) the CSA, BCSC, OSC, and the ASC can be gleamed from the BCSC's Service Reports and yearly Financial plans however the details seem to always change or even disappear.
In the case of the BCSC we see a lot of cause for concern, deceptive and manipulative practices are seemingly routine at an agency that is supposed to maintain market integrity.
The following snapshot was taken from the 2013 service report and show a little bit of the relationship between the BCSC and certain private corporations.
Now I understand to a point that the BCSC must have some technical help running filings systems and the digital apparatus that holds the system together (SEDAR, SEDI etc,) however I find it very odd that CDS Inc a company that runs all the electronic registry systems for the all the national regulators can be a wholly owned subsidiary of TMX group. TMX group is the corporation that owns the TSX and the TSX Venture.See CDS Inc.'s website here for confirmation.
Surely this is a conflict of interest, what about the private money market? Does a stock listed on the TSX get preferential treatment from the regulators compared to a private stock? Would TMX officials and our Regulatory authorities abuse their power?
TMX Group is in a position to pressure Regulators into favouring companies under their umbrella versus other forms of organized capital, their subsidiary CDS Inc is fully integrated into the regulatory framework.
Upon even further examination of the relationships between the Regulators and certain corporations we find that the TMX group which owns CDS Inc (BCSC Stakeholder) is connected in a big way to multiple large financial firms in Canada through Maple Leaf Group which now controls the majority of TMX Group. http://www.theglobeandmail.com/report-on-business/maple-group-wins-control-of-tmx-with-91-per-cent-of-shares-tendered/article4453456/
So we find that the real stakeholders that the BC Securities Commission and those like it have a concern for is simply the banks and financial institutes who own and manipulate them.
How in a supposed Democratic nation that values the rule of law can the Banks and the stock market possibly be justified in owning any measure of the Regulatory agencies that are designed to police them?