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Advisor.ca has posted an article entitled "Investor advocate in website battle" on July 21, 2005. Doug Watt writes "Investor advocate and regulatory crusader Robert Kyle's website has been shut down by his American service provider. The move follows legal threats from a Canadian law firm regarding some of the content on the site, Kyle has been told."
This is not the first time that investor advocate websites have been threatened.
Watt also writes "It's believed MacPherson, Leslie & Tyerman want all court documents related to legal claims involving advisor Brian Mallard and former employee Kent Shirley removed from the site since the matter is still before the courts. Kyle did take down those particular documents and has set them up on a separate server. Still, the U.S. provider, United Online Web Servers, refuses to restore the main site, which has been down since last Friday. ... Kyle's site contained hundreds of news articles, documents and court cases all related to self-regulatory organizations and the Canadian securities industry. "
Kyle's site has gained a reputation as a resource for journalists, investors and investor advocates. It was a valuable resource and provided an archives freely available to the public that is not available elsewhere.
It will be a pity if industry is allowed to run roughshod over investor advocates by using intimidation and the threat of lawsuits to force individuals to comply with their demands.
There is too much cover-up in the investment industry and it is high time that the federal government establishes an inquiry into the widespread wrongdoing that has been covered up for far too long.
The Senate Committee on Banking Trade & Commerce has only scratched the surface with its hearings but seem to be seeing through the industry subterfuge. The Committee has now extended the time to complete their report. It is hoped that the Senate Committees report will lead to some meaningful government action to provide meaningful investor protection.
Meanwhile SIPA has joined forces with CARP, Canada's Association for the Fifty Plus, and USCO, the United Senior Citizens of Ontario. This collective group represents over a half million seniors. This collective group is now supported by the Opposition Critic to the Attorney General, MPP Joe Tascona, who has prepared a Petition to the Government of Ontario to have an amendment to the recent Limitations Act to modify the limitation periods for small investors. The Act was pushed through in an Omnibus Bill and Members unwittingly voted for it without realizing the damaging impact on seniors who lose their life savings due to widespread industry wrongdoing.
Although the Attorney General at first refused to meet with a SIPA led delegation (the Attorney General's response is on the SIPA website at www.sipa.to), the Minister has now asked his staff to meet with SIPA. The meeting is expected to take place before mid August.
SIPA is also liaising with other groups with a view to collaborating to stand up for investors rights and address key issues that impact all investors.
Thursday, July 21, 2005
Sunday, July 17, 2005
RBC Dominion Securities Andrew Rankin found Guilty
Justice Ramez Khawley found RBC Dominion Securities executive Andrew Rankin guilty on ten counts of tipping. It is not unusual for the investment industry to disregard the rules and use our legal system to frustrate the regulators and try to escape justice.
However Justice Khawley's decision points up the deterioration of morality and ethics in our society that is creating an untenable situation for investors. Justice Khawley states that executives from RBC's investment banking arm are not very credible.
When our investment industry will not tell the truth to a judge in court, how can investors think that the investment advisors will tell them the truth. Almost every day we hear of situations where financial advisors, auditors and corporate executives are making misstatements, or if they are in court have selectively lost their memory of certain events.
How does RBC react to this? Moorcroft, a spokesman for RBC, said Justice Khawley's comments about DS witnesses is a "side issue" and "the credibility of individual witnesses are not on trial here". The industry apparently condones, if not demands, this behaviour.
Well, it's time that the credibility of the investment industry is put on trial.
Meanwhile, all investors should realize that with the lack of investor protection, the lack of enforcement, and the failure of the SROs to regulate their members, Canadian investors are in an INVESTOR BEWARE situation.
Investors must make themselves aware of how the industry operates with a cavalier attitude towards investors savings, and a callous attitude towards small investors. The industry is willing to engage in practices that will result in the decimation of life savings and disregard the needs of their clients. They will inappropriately place seniors and widows at risk that often results in the loss of their life savings, and then show no mercy and use the legal system to aggressively defend situations that appear indefensible.
Justice Kawley's remarks confirm that the industry will not only breach the rules in victimizing clients, but will also lie to circumvent the law.
INVESTOR BEWARE!
However Justice Khawley's decision points up the deterioration of morality and ethics in our society that is creating an untenable situation for investors. Justice Khawley states that executives from RBC's investment banking arm are not very credible.
When our investment industry will not tell the truth to a judge in court, how can investors think that the investment advisors will tell them the truth. Almost every day we hear of situations where financial advisors, auditors and corporate executives are making misstatements, or if they are in court have selectively lost their memory of certain events.
How does RBC react to this? Moorcroft, a spokesman for RBC, said Justice Khawley's comments about DS witnesses is a "side issue" and "the credibility of individual witnesses are not on trial here". The industry apparently condones, if not demands, this behaviour.
Well, it's time that the credibility of the investment industry is put on trial.
Meanwhile, all investors should realize that with the lack of investor protection, the lack of enforcement, and the failure of the SROs to regulate their members, Canadian investors are in an INVESTOR BEWARE situation.
Investors must make themselves aware of how the industry operates with a cavalier attitude towards investors savings, and a callous attitude towards small investors. The industry is willing to engage in practices that will result in the decimation of life savings and disregard the needs of their clients. They will inappropriately place seniors and widows at risk that often results in the loss of their life savings, and then show no mercy and use the legal system to aggressively defend situations that appear indefensible.
Justice Kawley's remarks confirm that the industry will not only breach the rules in victimizing clients, but will also lie to circumvent the law.
INVESTOR BEWARE!
Friday, July 08, 2005
Silencing Investor Advocates
The investment industry is successful in covering up widespread practices of wrongdoing. This is accomplished by failure to disclose and by intimidating those who would speak out.
The industry lobbyists are publishing a story that is not entirely true. There is a failure to admit reality and a failure to reveal the extent of wrongdoing. The regulators are either not fully aware of the wrongdoing or are involved in the cover-up.
The OSC Town Hall Event attracted a crowd of 500 people. This was living proof that it is not only a dozen people complaining about the wrongdoing as claimed by industry. There are thousands of aggrieved investors and many are prepared to speak out. There are countless others who have been victimized by the industry and then intimidated into settling their dispute for pennies on the dollar and signing a gag order. The public may never hear from these victims.
The Internet is empowering. It enables people to speak out. There are websites springing up that reveal this wrongdoing. One of the websites that provided an incredible amount of information was www.regulators.itgo.com that provided an archives of information. Investor advocates, investors and journalists began to rely upon this website for information.
Now this valuable website has become inoperative. It appears it has been forced to close.
In the recent past http://www.gadsdencreative.com/news.html was also taken down. Stephen Gadsden had written an Open Letter to Canadians that spoke out about wrongdoing by the industry. It was unflattering to say the least, but seemed consistent with other sources and appeared to be based upon first hand knowledge. Over a period of a few weeks the letter disappeared and later the whole website was taken down.
There have been other websites including www.badbroker.com and Jim Roache's website that was focused on one of the major brokerages. Jim was able to maintain his website for many years but in the end his website also became history. Thankfully Jim is still alive and active and devoting his many talents to helping others.
Individuals are unable to withstand the onslaught of nuisance lawsuits that the industry employs to silence those who would speak out.
That is why Canadian investors need an Investor Protection Agency funded by the Federal Government with a mandate to protect investors. Such an agency would have a national register of white collar criminals that would be available to investors showing the details of the misdeeds.
It will only be when there is transparency and an openness that enables investors to learn the truth that investors may place their trust in an industry that is driven by greed and has a cavalier and callous attitude towards investors.
Industry's attempts to woo the public with public proclamations of good intentions and displays of codes of ethics are rather unconvincing when industry's actions show their behaviour.
The mutual fund market timing scandal in December, when eight of the largest financial institutions stated they did nothing wrong when they took from the investors to enrich themselves, illustrates an attitude of industry greed and a cavalier attitude towards investors and their life savings.
The Portus, Crocus, and Norshield scandals further illustrate the industry's intent to loot the small investors' savings to benefit the financial institutions.
The Alberta Securities Commission scandal suggests the industry attitude of supporting systemic wrongdoing may permeate the regulators. The Manitoba Securities Commission has been named as one of the defendants in a Class Action lawsuit. Investors need a national authority with a mandate to protect consumer/investor interests.
Now the move by provincial legislatures to reduce limitation periods for civil litigation from six years to two years indicates that not only small investors rights, but the rights of all Canadians are being eroded. Many victimized investors already found it difficult to commence civil action within the six year limitation period. The reduction to two years will deny many victims their right to take civil action.
It seems that investors will have to look after themselves and will not be able to depend on the regulators to provide appropriate safeguards.
All Canadians must speak out and contact their political representatives. If Canadians fail to speak out and hold our leaders accountable they will be contributing to the victimization of our widows and seniors and leaving a sorry state for our descendants.
Industry has shown they will silence those who speak out by using intimidation.
The industry lobbyists are publishing a story that is not entirely true. There is a failure to admit reality and a failure to reveal the extent of wrongdoing. The regulators are either not fully aware of the wrongdoing or are involved in the cover-up.
The OSC Town Hall Event attracted a crowd of 500 people. This was living proof that it is not only a dozen people complaining about the wrongdoing as claimed by industry. There are thousands of aggrieved investors and many are prepared to speak out. There are countless others who have been victimized by the industry and then intimidated into settling their dispute for pennies on the dollar and signing a gag order. The public may never hear from these victims.
The Internet is empowering. It enables people to speak out. There are websites springing up that reveal this wrongdoing. One of the websites that provided an incredible amount of information was www.regulators.itgo.com that provided an archives of information. Investor advocates, investors and journalists began to rely upon this website for information.
Now this valuable website has become inoperative. It appears it has been forced to close.
In the recent past http://www.gadsdencreative.com/news.html was also taken down. Stephen Gadsden had written an Open Letter to Canadians that spoke out about wrongdoing by the industry. It was unflattering to say the least, but seemed consistent with other sources and appeared to be based upon first hand knowledge. Over a period of a few weeks the letter disappeared and later the whole website was taken down.
There have been other websites including www.badbroker.com and Jim Roache's website that was focused on one of the major brokerages. Jim was able to maintain his website for many years but in the end his website also became history. Thankfully Jim is still alive and active and devoting his many talents to helping others.
Individuals are unable to withstand the onslaught of nuisance lawsuits that the industry employs to silence those who would speak out.
That is why Canadian investors need an Investor Protection Agency funded by the Federal Government with a mandate to protect investors. Such an agency would have a national register of white collar criminals that would be available to investors showing the details of the misdeeds.
It will only be when there is transparency and an openness that enables investors to learn the truth that investors may place their trust in an industry that is driven by greed and has a cavalier and callous attitude towards investors.
Industry's attempts to woo the public with public proclamations of good intentions and displays of codes of ethics are rather unconvincing when industry's actions show their behaviour.
The mutual fund market timing scandal in December, when eight of the largest financial institutions stated they did nothing wrong when they took from the investors to enrich themselves, illustrates an attitude of industry greed and a cavalier attitude towards investors and their life savings.
The Portus, Crocus, and Norshield scandals further illustrate the industry's intent to loot the small investors' savings to benefit the financial institutions.
The Alberta Securities Commission scandal suggests the industry attitude of supporting systemic wrongdoing may permeate the regulators. The Manitoba Securities Commission has been named as one of the defendants in a Class Action lawsuit. Investors need a national authority with a mandate to protect consumer/investor interests.
Now the move by provincial legislatures to reduce limitation periods for civil litigation from six years to two years indicates that not only small investors rights, but the rights of all Canadians are being eroded. Many victimized investors already found it difficult to commence civil action within the six year limitation period. The reduction to two years will deny many victims their right to take civil action.
It seems that investors will have to look after themselves and will not be able to depend on the regulators to provide appropriate safeguards.
All Canadians must speak out and contact their political representatives. If Canadians fail to speak out and hold our leaders accountable they will be contributing to the victimization of our widows and seniors and leaving a sorry state for our descendants.
Industry has shown they will silence those who speak out by using intimidation.
Labour-sponsored Funds
Buzz Hargrove, national president of the Canadian Auto Workers, writes in the National Post, page FP19, July 8th, 2005; "There are about 120 labour-sponsored funds in Canada. Two-thirds of them lost money over the past year (even as the TSX composite was gaining more than 20%). None of the 10 largest labour funds has generated a positive return over the last five years."
Hargrove supports government efforts to stimulate investment spending but says "labour funds are not the way to do it. They are wasteful, ineffective and damaging to the integrity of those unions that have involved themselves in them."
Crocus is recently the most prominent labour sponsored fund to encounter difficulty, but there are many others.
Small investors would be well advised to avoid investing in any investment products that they do not fully understand. Whether it is labour sponsored funds or guaranteed investments, investigate before you invest. Money lost is difficult to regain. Determine the risks related to the investments. If there is a guarantee determine what is the guarantee and who provides it? A guarantee to get all of your money back in ten years means you have given a ten year loan interest free.
Investors should be aware of the associated risks prior to investing in any product.
Hargrove supports government efforts to stimulate investment spending but says "labour funds are not the way to do it. They are wasteful, ineffective and damaging to the integrity of those unions that have involved themselves in them."
Crocus is recently the most prominent labour sponsored fund to encounter difficulty, but there are many others.
Small investors would be well advised to avoid investing in any investment products that they do not fully understand. Whether it is labour sponsored funds or guaranteed investments, investigate before you invest. Money lost is difficult to regain. Determine the risks related to the investments. If there is a guarantee determine what is the guarantee and who provides it? A guarantee to get all of your money back in ten years means you have given a ten year loan interest free.
Investors should be aware of the associated risks prior to investing in any product.
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