Canada Watchdog Focuses on More Disclosure

Ontario Securities Commission, one of Canada’s regulatory watchdogs, is looking into launching new initiatives this summer to protect investors, according to the Financial Post. “The investor has to know that someone is working to keep the playing field level,” said David Wilson, OSC chairman, at a conference this week. “That someone has to be the regulator.” In the past, investors have criticized Canada’s regulators for not being vigilant enough. OSC’s new efforts include a two-page point-of-sale disclosure document to help simplify investment options for mutual and segregated funds. “Achieving full and appropriate disclosure is seriously, perhaps fatally, compromised if the disclosure is so cumbersome and so complex that investors don’t read it, or if they do read it, they don’t understand it,” Wilson said. Also, a new “anti-scam unit” will launch in June or July, Wilson noted, with a mandate to fight fraud illegal distributions, including boiler rooms. “With globalization comes the proliferation of even more sophisticated cross-border frauds,” he said. “Scam artists have taken the old cons and juiced them up using new technology.” “I believe that people behave differently when they know that someone is checking their conduct,” he added. The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.