Canadian mutual fund investors are largely unfazed by the widespread mutual fund scandals in the U.S. and similar types of abuses in their own back yards, Winnipeg Free Press reports.
CIBC World Markets economist Benjamin Tal noted that Canadian investors are still relatively bullish on mutual funds despite reports this week by The Globe and Mail stating that market-timing scandals caused investors to collectively lose millions of dollars. Most Canadian investors are willing to turn the other cheek, Tal said, because mutual funds are still the most convenient way for individuals of modest means to enter the stock market.
Canada's main securities regulator, the Ontario Securities Commission (OSC), was criticized by shareholder activists for reacting slowly to initial reports of misconduct by Canadian investment firms. The OSC began its investigation of market timing and late trading practices last fall, soon after the Securities and Exchange Commission handed out its first notices to U.S. mutual fund providers for the same infractions.