For a second year in a row, staff members of the Ontario Securities Commission’s Enforcement Branch took part in the International Internet Surf Day coordinated by the International Organisation of Securities Commissions (IOSCO). This multinational effort was conducted by securities regulators from around the world to increase investor protection and foster capital market confidence.

During the Surf Day, approximately 300 individuals from the 41 participating authorities visited more than 27,000 websites, totalling approximately 1,200 hours of global participation. Of these sites, more than 2,400 were identified for follow-up review, including approximately 300 sites that involved cross-border activity. That review is now underway and could result in further investigation and possible enforcement action.

The Surf Day was conducted on April 23, 2001, and mobilized the efforts of 41 securities and futures regulators from 35 countries. Internet monitoring by regulators targeted fraudulent solicitation of investors, stock manipulation, circulation of false or misleading financial information and insider trading.

The 21 regulators that participated in last year’s Surf Day took specific steps to deter future abuse, including investigating and taking action against Internet fraudsters and educating investors about illegal activity via the Internet.

Investigators from the OSC’s Enforcement Branch reviewed 447 sites, of which they identified 43 as being of a suspicious nature. Three themes were identified among the sites deemed suspicious: High yield/low risk investments programs; individuals marketing their expertise as professional securities analysts and promoting penny stocks; and individuals offering various offshore/secretive financial services.

The Ontario Securities Commission urges investors to be alert to signs of fraud and to refer to the “Investor Alert” section on the OSC’s Website.