An investor advocacy group has secured $1 million in new funding from the Ontario Securities Commission (OSC).
The OSC announced Tuesday that it has allocated funds it has collected from monetary sanctions and settlements in enforcement cases to the Canadian Foundation for the Advancement of Investor Rights (FAIR Canada), a national non-profit organization that advocates on behalf of investors.
The money will be paid in two installments of $500,000 over a two-year period.
FAIR Canada, which was established in June 2008, was originally funded by the Investment Industry Regulatory Organization of Canada (IIROC) from the penalties collected by IIROC’s predecessor organizations, Market Regulation Services Inc. (RS) and the Investment Dealers Association of Canada (IDA). Its initial $3.75 million grant was expected to run out by the end of the this year.
Since it was founded, FAIR Canada has advocated a wide array of investor issues, it has been particularly vocal in its demand for a requirement that financial advisors put clients’ interests first. Recently, it has called on the OSC to create a comprehensive registration database, oppose advisor incorporation, and tackle issues such as inappropriate leveraging. It has also called on regulators to require that all registered firms and individuals belong to a self-regulatory organization; for the OSC to appoint a commissioner with a strong retail investor background; and for the commission to address conflicts of interest within the TSX regarding the separation of its regulatory and commercial functions; among a host of other issues.
For its part, the OSC has ramped up its focus on investor issues in the past couple of years too — including the creation of an independent Investor Advisory Panel to provide input on its rulemaking initiatives; and, it has promised to create a new Office of the Investor this year to intensify that focus even further.
“Constructive input from investors is encouraged in the development of regulatory policy,” said Mary Condon, vice chair of the OSC. “FAIR Canada plays an important role in advancing the interests of retail investors and promoting investor protection. The OSC is pleased to provide funding for FAIR Canada’s ongoing work.”