FAIR Canada
FAIR Canada Newsletter
February 2014

Treat Shareholders Fairly When Venture Issuers Raise Capital

The majority of issuers on the TSX Venture Exchange (TSXV) are struggling to raise additional capital in today's market. Exploring ways of modifying existing methods of raising capital so that issuers can do so in an effective and cost-efficient basis, while maintaining adequate investor protection, is much needed.

 

As such, securities regulators are currently consulting on an initiative to allow TSXV listed issuers to raise money by distributing securities to their existing shareholders on a prospectus-exempt basis. Such an initiative is to be supported so long as mechanisms are in place to prevent abuse and ensure fairness to all shareholders - as well as adequate investor protection.

 

This story originally appeared as an Inside Track op-ed in the online version of Investment Executive. To read the rest of the article on our website, click here

 

 

Busy Investor Advisory Panel

 

The Ontario Securities Commission's Investor Advisory Panel (IAP) has been very active recently.

 

The IAP has called for regulatory action on a statutory best interest standard and reform of certain mutual fund fees in its annual report.

 

It has also issued letters to the Ontario Securities Commission urging it to focus on strengthening the investor protection regime in Canada by introducing a best interest standard; reforming conflict-ridden compensation structures (including the current fee structures for mutual funds); and providing fair, timely, and independent complaint handling and restitution for investors. This letter was provided in response to a request from the OSC for the IAP's views on priorities and areas of focus for the OSC as it begins its business planning for the upcoming year.

 

 

FAIR Canada's Recommendations as to the Regulation of Financial Planning

 

FAIR Canada has provides its comments to the Ontario Ministry of Finance on its consultation regarding the regulation of financial planners. FAIR Canada recommends that a person (or his or her firm) should not be permitted to hold out as a professional who provides financial advice unless they provide advice that is unbiased and not in conflict with the client's best interest and meet the minimum uniform level of proficiency.

 

Click here to read more.  

 

 

Civil Liability for Secondary Market Disclosure - Court of Appeal Overturns Timminco Decision

 

A five panel Court of Appeal has concluded that Timminco wrongly held that: (1) a class action properly commenced cannot also assert a cause of action for the statutory remedy under s.138.3 (civil liability for secondary market disclosure) unless leave has first been obtained and (2) before leave is obtained, section 28 of the Class Proceedings Act does not suspend the limitation period for all class members in a properly commenced class proceeding that claims a remedy under s.138.3 and proposes to seek leave.

 

 
 

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