David Brown, chairman of the Ontario Securities Commission, delivered a report today on the Investor Town Hall held May 31 that lists concerns raised by many retail investors and indicates possible approaches that might be taken to respond to the issues.

In the report, the OSC pledges to explore better options for investor restitution, improve the accessibility of the complaint process, establish a consumer advisory panel, and alert the government to investor concerns about the new two-year limitation period.

In the report, Brown, says that the Town Hall “made it clear that many consumers of financial services have questions about where to turn when they have a complaint. Some expressed frustration and confusion with the process. They have concerns about the way their complaints have been dealt with – and they want to be heard.”

Within the report the OSC commits to:

  • develop means to make sure the complaint process is comprehensible and accessible;
  • examine the avenues of restitution, and develop ideas to ensure they meet the needs of aggrieved investors;
  • convey investors’ concerns to the Ontario government regarding the two-year limitation period;
  • create an investor advisory body to help identify and address issues affecting investors and ensure that the views of consumers of financial services are well represented; and
  • hold Town Halls, and develop other vehicles to report to the public.



“This Town Hall event should convince everyone that there are serious issues with regard to investor protection and there is a real need to enhance protection against wrongdoing and to institute remedial measures that are timely and fair and not controlled by an industry that has displayed a cavalier and callous attitude towards small investors and their life savings,” says Stan Buell, Small Investor Protection Association, in the report.

Investment Dealers Association of Canada president and CEO, Joe Oliver, says that the IDA has already modified its consumer protection brochure. He adds that the IDA will work to develop more user-friendly account-opening statements, and more clarity about fees and investment performance data in account statements. The IDA will also implement changes recommended in its Regulatory Analysis of Hedge Funds Report and work with provincial securities commissions to bring hedge funds distributed to retail investors fully within the regulatory system.

Oliver says that the IDA will continue its efforts to convince governments to create special courts for white-collar crime and toughen parole laws, and it will continue to pursue new enforcement powers to allow it to collect fines from disciplined individuals who have left the industry. “Above all, we will continue to listen to the voice of the small investor,” he says in the report.

Larry Waite, president and CEO of the Mutual Fund Dealers Association, says that the MFDA is looking at its processes and its investor education programs to see where improvement can be made. It is also updating its complaints communications to warn investors about provincial Statutes of Limitations. “In this regard, we are contacting the Ontario government to bring to its attention the impact of the changes to the legislation on investors and urging that the prior limitation period be restored,” Waite says in the report. “The MFDA is committed to the small investor who is a key component of a robust capital market.:

Mike Lauber, outgoing Ombudsman for Banking Services and Investments, says in the report, “Obviously, more effort is required by all parties to increase investors’ understanding of the regulatory and dispute resolution process in the investment sector. We must also work to encourage investors to have the confidence to take their complaints to the firms and then escalate them to OBSI if not resolved by the firm.”

“Many investors are unfamiliar with their rights, and what recourse is available to pursue their claims. In many cases, there is a lack of trust in the system, an attitude that results from frustrations many investors encounter when they access the system. Many find the complaint process difficult to navigate, a problem that may cause some complaints to fall between the cracks,” Brown says.

“We have to pursue initiatives that will address investors’ concerns in this area, including gathering the data that will give us a clear picture of the nature and degree of the problem and help us shape solutions,” he concludes. “We are talking with the organizations involved in the Town Hall panel – the IDA, the MFDA, the OBSI and the SIPA – about continuing efforts to ensure cooperation among stakeholders. And we intend to provide individual investors with opportunities to voice their views and raise questions.”