Saturday, 21 January 2017
Here is How to Make Financial Crime and Abuse of Canadians a Well Paying Safe Proposition
Your Securities Commission cannot be trusted, more from financial expert Larry Elford on the subject of Fraud committed by our own Financial Regulatory Commissions.
Here is how to make financial crime and abuse of Canadians a well paying safe proposition:
1. We "self" regulate, meaning we get to police ourselves.
2. We pick and choose who will head the securities commissions, thus we get to appoint "friends" to police us.
3. We pay those friends about triple what they would ordinarily earn in this kind of position. (SEC head earns $162,900 while Canadian security commission heads are paid upwards of $500,000)
4. They (our friendly regulators) let us commonly and routinely violate securities laws, using something called "exemptive relief" from the law. Thousands of public examples. No public notice of investments or investment sales pitches that do not met our laws but are given to consumers to obtain their money.
5. Our same friendly regulators have conned their way into credibility, enough to earn seats on "joint management committees" of the RCMP IMET investigative team. Thus, we are able to avoid criminal investigation 99% of the time due to our inside position on this commercial crime force.
6. When fines and penalties are levied by the financial regulators in Canada, the self regulators usually "keep" the money. That's right, if they recover money through fines, usually none of it goes back to the victims, but stays in the coffers of the regulators.
When ABCP (toxic, poorly rated debt product) needed to be dumped on Canadian consumers, while it did not met our laws......investment sellers went to their pals at the securities commissions to apply for legal exemptions to sell this toxic product.
Approximately 20 exemptions were granted here in Alberta (and I assume 12 other provinces and territories) and $32 billion of toxic debt was dumped onto Canadians.
Securities commissions not only cannot seem to answer simple questions on this matter now such as "why give legal relief, etc., etc, but when things got really hot and it appeared as if they had to act to make an appearance of being "regulatory", they applied fines and penalties to their friends in the investment business of less then half of one cent for every dollar missing in Canada from these products.
These fines were imposed by the very persons who aided the financial scam by giving them the legal permission to break the law and sell this crap in the first place. Isn't it lovely when we give ourselves the ability to police ourselves. Kind of like asking the Hells Angels to police crack cocaine and hookers since they are the "largest market participants." (my apologies to the Angels if I have damaged their reputation by comparison to the investment regulatory industry in Canada)
Two other minor points.
Last point. When the investment regulatory assn (IIROC formerly IDA) had to act to appear impartial, their president Susan Wolbergh Jenah spoke publicly that the investment dealers had no idea what they were selling.
Strange to hear her say this as it was her signature on legal exemption documents letting this toxic product be sold a few years earlier when she was the vice chair of the OSC.
I guess it is hard to remember what you did when you were the $400,000 vice chair of the OSC, now that you are earning $700,000 as the head of IIROC. Isn't paid forgetting wonderful?