January 2016

FAIR Canada's Monthly Review

Welcome to the first edition of FAIR Canada's new newsletter: FAIR Focus.

The newsletter offers a snapshot of what FAIR Canada has been up to each month, including links to our latest commentaries on issues facing investors. You'll also find links to our newest submissions to regulators and our monthly editorials. When FAIR Canada hosts an event or conference, we'll let you know about it here, and we'll share information about upcoming events that we're attending.

We hope you'll find FAIR Focus interesting and informative.

Best wishes for the month ahead.

The Team at FAIR Canada

Whistleblower - OSC's draft policy a positive step but needs revisions

FAIR Canada applauds the Ontario Securities Commission ("OSC") for moving forward with a whistleblower program, but greater certainty is needed about eligibility for whistleblower awards, and other measures must be adopted to improve the program's effectiveness. Read FAIR Canada's full comments here.

Cooperative Capital Markets Regulator still missing key investor protection components

Investor protection must be at the forefront of the cooperative regulatory scheme. FAIR Canada urges governments and regulators to approach harmonization efforts with the goal of furthering investor protection, to incorporate specific measures into the new Capital Markets Act and regulations for that purpose, and to not lose focus on important investor protection initiatives already underway. Read the full version of FAIR Canada's comments here.

Alberta/Nunavut "start-up" business exemption should not proceed

FAIR Canada has identified serious concerns with a proposed prospectus exemption for start-up businesses in Alberta and Nunavut. The proposal undermines investor protection measures recently put in place in Alberta's offering memorandum prospectus exemption. Read FAIR Canada's full comment on this here.

FAIR Canada Supports Expert Panel's preliminary report on reforms to FSCO

In addition to supporting the Expert Panel's conclusion in their Preliminary Report that a restructured regulator is necessary, FAIR Canada believes the new agency should have as its mandate the dual purposes of (i) securing an appropriate level of protection for consumers and (ii) protecting and enhancing the integrity of Ontario's financial services marketplace. FAIR Canada makes recommendation in order for the new regulator to succeed in its mandate and urges the new regulator to adopt common and consistent standards for all financial services intermediaries along with disciplinary and enforcement consistency across the regulatory spectrum. To view all our recommendations, read our comments here.

Using the Title "Financial Planner"

Establishing minimum proficiency requirements for MFDA Approved Persons to call themselves "financial planners" is a step in the right direction, but what's urgently needed is a coordinated and comprehensive solution that keeps its focus squarely on consumer needs. Continue reading here.

Disclosing IIROC membership

FAIR Canada supports requiring Dealer Members to disclose membership in IIROC on all client account statements. More on this here.

Laws should aid misled investors, not negligent auditors

It's time to discard an ill-fitting legal precedent and rethink our inadequate liability limits

Margin of error: Why advisors shouldn't be off-book loan distributors
Letting margin and off-book lending proliferate simply invites disaster - as does any arrangement that incentivizes advisors to recommend leveraging