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. http://www.cds.ca/
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?
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