Another excellent exert from Mr. Larry Elford on the state of our Financial Regulatory system.
The current regulators are allowing the industry to deceive the Canadian public.
I agree with this and it was also agreed to by two or more other investment industry professionals who are well into the know. DEEP into the know, if you want to know......
He went on to say this:
The regulators create the perception that they discipline the industry to protect investors yet Debra's Report clearly shows that the majority of finse are never collected ,,,
almost one billion dollars worth!
http://sipa.ca/library/SIPAsubmissions/ ... 202016.pdf[/url]
Here is the IIROC (industry self regulator report on unpaid fines, just one segment)
One billion of uncollected fines.....
Over 5000 laws exempted.....to benefit investment sellers and manufacturers......no notice of exempted products to consumers....
160,000 registered salespersons allowed to violate provincial laws (Alberta Sec Act sec 75, 100, Ontario Sec Act sec 44, BC Sec Act sec 34 etc) and deceive the public into a false sense of trust and vulnerability with false, non registered titles...
(should dealing with a financial "advisor" in Canada be as risky as trusting a salesperson at FutureShop? Where the electronics giant "hid" that all its staff were on commission???
Sheesh! I thought our banks were just a tad better than Future Shop....)
Here, for the record are the candid comments, (and the well informed SOLUTION) as written by the man:
The more I think about it, the more I inevitably come to the same conclusion.
The current regulators are allowing the industry ro deceive the Canadian public.
The CSA (Canadian Securities Administrators) acknowledge that "Financial Advisor" is an unregulated busiess title but allows the industry to call commission driven sales persons by this tilt that misleads people into believing it is the same as Adviser and that their Advisor has a fiduciary duty and will look after their best interests.
The regulators allow marketing that reinforces this misconception.
The regulators create the perception that they discipline the industry to protect investors yet Debra's Report clearly shows that the majority of finse are never collected almost one billion dollars woirth!
Further the disciplinary
They often proclaim there is not sufficient evidence of rule breaching or simply provide a warning letter to the perpetrator and do nothing to help the victim gain restitution.investigations are a joke. The investigators are on the side pf the perpetrator.
I know for sure this is true because it happened to me. Absolutley no help from the regulators ... including the OSC.
For example many years ago the OSC had investigated my broker for insider trading and called me in for interrogation. Two hours alone with two interrogators treating me as a suspect. The interrogation was recorded. When I found out much later that my broker had cheated me I went to the OSC and requested a copy of the interrogation because it would have provided good evidence to support my case. My first contact said it would take some time because it was in their archives. When I followed up I was told they could not find it. There are other specific examples as well that seemed a conspiracy with the industry. And these are the regulators that protect investors?
I agree that to aloow this bunch of rogues to create a national regulator would be of little or no benefit to investors. It would in all probability perpetuate the deception that exists today.
The Government must create a new Investor Protection Agency or a national auditor with legislation that provides the power for oversight to ensure that the welfare of Canadian investors is protected.
The current sham of regulation does nothing to protect investiors. For example; the OSC saw fit to gain exemption from the reduced limitation period for themselves but did nothing for investors. Their heads would have to be buried in the sand if they did not realize that victims of major financial loss need more than two years to get their heads around the fact that a "well regulated" industry and trusted "Financial Advisor" and maybe "Vice President" would cheat them out of their money and then follow the industry procedure for addressing complaints within two years.
I know I could not do it even within the six year limit that existed at the time of my loss. When I found out there was indeed something wrong it took me six months full time just to investigate and find out what actually had happened ... and the regulators were most definitely unhelpful. It was a friendly journalist ... Dan Westell of the Financial Post ... who helped me find the way.
I think trying to deal with the current batch of regulators is indeed a waste of time. I feel we may add to the deception by doing so.
Experts who can only make recommendations would also seem to be a waste of time, no matter how well intended. Input without results may also aid the deception. Consider the Wise Persons Committee. At the time it seemed promosing indeed, but nothing happened.
More studies. More comments. More deception.
The little good we can do is trying to raise awareness and helping the odd soul on their path to recovery. Many never make it. Some suffer in silence. others end it.
Ai least there is some solace when a small investor fighting for restitution seems to be raching the final stages but then cease contact. I say to myself "another out-of-court settlement".
At least that is my cynical view on this glorious Victoria day week-end.