Although the Ontario Securities Commission found only four out of 105 firms in its initial investigation possibly guilty of market timing, some experts believe the probe could widen. And if it does, massive outflows from the firms under investigation could mirror what happened in the United States.
The Commission might target as many as 20 additional firms, The Globe and Mail reports. Regardless of how many firms are investigated, the National Post reports, David Brown, chairman of the OSC, is nowhere near as adamant or as fierce as New York Attorney General Eliot Spitzer, who launched the investigation in the U.S. And the OSC is hardly likely to demand the enormous settlements and lower fees that Spitzer has gotten out of American fund companies.
Still, the mere question of dubious activity could cause Canadian investors to withdraw money, the Post reports. "Clients and advisers will want complete information on what was really found," said Dan Hallett, an industry consultant.