Will Government Give Small Investors a Fair Chance?

"Giving Small Investors a Fair Chance – Reforming the Mutual Fund Industry" is the title of CARP’s Report and Recommendations in partnership with the Small Investor Protection Association - September 2004.
The report examines the mutual fund industry and makes a number of recommendations for reform. The Number 1 recommendation is that a federal Investor Protection Act should be passed which includes the establishment of a single, national, independent Investor Protection Agency (IPA) accountable to Industry Canada or the Attorney General of Canada.
This is an important recommendation that will be followed up with the federal government by CARP and SIPA. SIPA’s members have already communicated with every M.P. across Canada to ensure they have a copy of the report.
The report was presented to the Honourable Tony Ianno at a media conference on September 28th. In a preliminary meeting the Minister discussed the report with CARP and SIPA representatives. The minister stated he would discuss the report with the Minister of Industry, Hon. Lucienne Robillard, and the Minister of Finance, Hon. Ralph Goodale.
CARP and SIPA agreed to work with the Minister to develop strategies to move this initiative forward.
There was a good turnout for the media conference with several journalists, a couple of TV cameras, investor advocates and SIPA members, and industry representatives including OBSI’s Mike Lauber. Glorianne Stromberg was also present.
The IDA was quick to respond to the CARP Report. Their comments in an advertisement in the Investment Executive are;
The Investment Dealers Association of Canada today responded to “Giving Small Investors A Fair Chance, Reforming the Mutual Fund Industry”, a report issued by the Canadian Association for Retired Persons (CARP).
In a statement, the IDA said the CARP report includes a number of redundant recommendations where rules or policies are already in place as well as a number of inaccuracies.
The media also wrote about the report:
Rob Carrick, Globe and Mail, said:
The only way to improve protections for small investors in Canada is to get politicians interested, and the only way to do that is to have investor advocacy with clout.
Ellen Roseman, Toronto Star, said;
Buell gets lots of publicity, but he hasn't been able to move his agenda forward. That could change now he's allied himself with an advocacy organization 100 times his size. … Reform is a tough nut to crack. But with CARP beavering away, I feel better already.
Linda Leatherdale, Toronto Sun, said:
In a joint press release, CARP and SIPA warn, "The mutual fund industry suffers from deficient regulations, abusive industry sales practices, excessive fees, inadequate governance and lax regulatory enforcement."
John DeGoey, Globe and Mail, said:
The most important recommendation is that the federal government should pass an investor-protection act, creating an independent investor-protection agency, which is accountable to the federal government.
NOTE: Every SIPA member should write their Member of Parliament for Canada and also their Member of Provincial Parliament, and ask them to support this important initiative for a national Investor Protection Agency.