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.