Joint N.P.S.C.F./SIPA/U.S.C.O. submission to FinanceMinister

For the last couple of years SIPA has worked closely with the United Senior Citizens of Ontario and the National Pensioners and Senior Citizens Federation to raise awareness of the issue of seniors losing their savings due to widespread investment industry wrongdoing.

Jointly our three organizations have made a number of submissions and presentations to government. The following is our submission to the Minister of Finance in June this year.

June 10, 2007 by e-mail to: Flaherty.J@parl.gc.ca

Honourable James Flaherty
Minister of Finance

Dear Minister;

In January we wrote to the Hon. Marjory LeBreton, Secretary of State for Seniors
stating that our organizations represent approximately one million seniors in Canada and that we are concerned that Government has failed to recognize that seniors losing their savings due to inappropriate action and outright wrongdoing by the investment industry is a serious issue.

We also said the recent income trust fiasco is only one of the many situations that vividly illustrate the propensity of the investment industry to develop innovative products that create the illusion of good investments. Small Investors, and in particular seniors, are being deceived and sold products that are eminently unsuitable for most of them.

In January we asked that the Honourable Le Breton meet with our delegation to discuss our concerns. We received a reply stating our request was forwarded to you.

Also in January this year we wrote to the Standing Committee on Finance stating “The Income Trust Probe should hear from organizations that represent the interests of seniors and other small investors as well as representatives of the investment industry. Our organizations represent about one million seniors and investors across Canada and we have affiliated to raise awareness of the issue of financial elder abuse. We have made presentations to the Standing Senate Committee on Banking Trade and Commerce, and the Ontario Standing Committee on Justice Policy. We have also participated in a Coalition for Investment Protection to make recommendations to the Quebec Government.”

It is unacceptable that the protection of investors is left in the hands of a regulatory regime that is controlled by the industry. This is a conflict of interest. Although securities regulation is a provincial responsibility it is time that Canada has a national regulator, but also time that our national Government takes action to protect all Canadian retail investors so that seniors will have retirement security.

With the trend moving away from defined benefits pension plans towards defined contributions plans, and the fact that many Canadians do not have any private pension plan and rely upon their Registered Retirement Savings Plans it is becoming imperative that investors are protected so they do not lose their savings due to widespread wrongdoing that appears systemic in the investment industry today.

In May 2005, the OSC held a Town Hall Event in downtown Toronto at 7:30pm anticipating that 100 to 150 people would turn out based upon the time and location and their knowledge of events. In fact about 500 people turned out to express their frustration and anger with the current state of affairs with regard to investment industry regulation and the lack of investor protection and adequate means to have their complaints addressed. A copy of the transcript of that event is appended for your staff to review and report to you.

In an Ottawa media conference on April 26, 2007, our three associations jointly requested a national inquiry on the malfunctioning of Canada's securities and accounting regulation and white collar crime enforcement system.

We support the campaign to tackle investor protection and unchecked white collar crime in Canada launched on May 24, 2007 by Judy Wasylycia-Leis, Federal NDP Finance Critic and Member of Parliament for Winnipeg North.

We are asking that all federal parties support immediate work on the creation of new federal legislation and agencies to protect investors and employee whistleblowers.

The retirement security of our members, and all Canadians, is at stake.

We ask that you meet with our delegation so that we may brief you on our concerns and learn what action you are taking to address this unacceptable situation.

Yours truly



Art Field, President National Pensioners and Senior Citizens Federation (N.P.S.C.F.)



Stan Buell, President Small Investor Protection Association (SIPA)



Marie Smith, President United Senior Citizens of Ontario (U.S.C.O.)


Cc Rt Hon. Stephen Harper, Prime Minister of Canada
Hon. Marjory LeBreton, Minister of State for Seniors