The Canadian Foundation for Advancement of Investor Rights is calling on the Ontario Securities Commission to create a new investor advisory body, and to add a commissioner with a grounding in retail investor issues.

The demands come in FAIR Canada’s submission in response to the request for comment on the OSC’s statement of priorities for the fiscal year ending March 31, 2011. In particular, FAIR recommends that the commission create a small investor panel, comprised of eight to 10 people representing retail investors and shareholder rights; and that the panel members be paid for their work.

“It is FAIR Canada’s view that the OSC needs to take the Investor Steering Committee/Secretariat to the next level or replace it with another structure in order to have a truly effective, transparent and credible mechanism for investor consultation and feedback,” it says; and it recommends that the OSC adopt a “concrete proposal for the creation of such a panel, including a specific workplan, mandate and timeline for its creation.”

Additionally, the group calls on the OSC to appoint a commissioner with a strong retail investor perspective. “There is currently an imbalance at the commission, in terms of influencing OSC decision-making and policy development,” it says.

“Given that the OSC’s primary mandate is investor protection, it is incumbent on the OSC to ensure that the interests of key stakeholders, notably retail investors, are well-represented in senior levels of the organization, including the commission itself,” it adds. “FAIR Canada continues to be concerned that retail investor representation is lacking in the make-up of the commission as it is presently constituted.”

Therefore, it encourages the OSC to seek a commissioner with a background in retail investor issues, and it urges more transparency in the commissioner selection process generally.

IE