INVESTOR BEWARE - Investor protection is being eroded

The OSC Investor Town Hall Event has not received the media coverage that is due. The Event is probably the most important event for investors and investor protection ever. This was the first time that the regulatory leaders came face to face with small investors in the public eye.

There were issues brought up by investor advocates that deserve public airing. These are on the public record and the OSC has undertaken to respond to all of the questions submitted through SIPA during the month preceding the event.

Initial estimates of attendance were in the 100 to 200 range, so 200 seats were ordered for a space that could accommodate 500. As many people began to pre-register for the event it was obvious additional seats would be needed so the
OSC ordered more seats.

By the day of the event over 400 had already registered. A decision was made that priority would be given to questions from the audience, and the OSC undertook to provide responses to all questions submitted through SIPA at a later date.

That evening of May 31st the CBC Atrium was filled. There was no lack of questions and comments. There was emotion. Some anger. Some grief.

The meeting ran overtime. Still there were hands going up and line-ups at the two floor microphones when the meeting was closed.

The small investor situation was summed up by a brave lady who admitted they had lost their life savings of $170,000 and finally settled with the bank owned brokerage for $30,000 in returned fees, and signed a gag order to protect the bank from being exposed. They did not know where to turn and asked if there was anything that can be done. The regulators said too bad. It's too late. You settled and signed a gag. A cold, hard hearted, insensitive response. It's time for a better system.

Ken Kivenko raised the issue of limitation periods and the fact that Ontario reduced the six year period to two years. Most people are not aware that there is a limitation period for taking legal action from the time that you become aware or should have come aware of a problem.

Many victims of financial crime have trouble meeting the six year requirement. CARP and SIPA had requested that the six year limitation period be increased to seven years.

Now Ontario has reduced it to two.

SIPA will pursue this issue by every avenue available as we believe it is the single most important issue for investors. The industry and the regulatory system has failed to provide adequate investor protection. Investors are losing billions of dollars each year due to wrongdoing. Their only safeguard has been the right to take civil action. Now this right is being eroded by reducing limitation periods.

It seems we have come full circle and we are now back to "INVESTOR BEWARE"!