CBC Reports on Low Collection Rates - Stories that the CBC ran, both on its website and on The National, highlighted the low rate of fine collection by provincial securities regulators. The website article indicated that some consumers and victims are unaware that the fines are not being collected and that several individuals who have been fined consider the process "a farce".

FAIR Canada Executive Director Ermanno Pascutto, who was interviewed for the website story, notes that the rule-breakers probably already know that most of the fines are not paid and agrees that Canadians should be aware that the current system is not effective at collecting fines. He suggests that a national securities regulator in Canada might improve both enforcement and collection efforts. The ability to enforce judgments and collect fines from individuals who move from one province to another would be simplified if the Federal Government and the provinces cooperated to create a national securities regulator. A national regulator could make orders that would be effective across Canada (including barring wrongdoers from dealing with consumers across Canada) while provincial regulators' powers are limited to orders within their province.

Low Collection Rates Do Not Necessarily Indicate Ineffective Enforcement - Low fine collection rates should not be interpreted as a sign that securities regulators in a given province are not effectively enforcing securities laws. David Baines, who has written extensively on securities fraud for the Vancouver Sun, provided his perspective, suggesting that uncollected fines may be an indication that the securities commissions are doing their job well, as the amount of fines imposed indicates that securities commissions have been aggressive in sanctioning registrants and suspending them from continuing to act as registrants. 

Click here to read more, including FAIR Canada's recommendations for improving fine collection and enforcement.