The Ontario Securities Commission's new investor panel wants to hear from shareholders on issues such as sales documents, enforcement and legal standards for financial advisers, as it decides where to focus its efforts first.
The OSC set up the Investor Advisory Panel last summer in response to complaints that the commission was not listening to small investors when developing new policies and priorities.
The panel, led by University of Toronto law professor Anita Anand, has published its first initiatives for action and is asking shareholders for their views on its initial priorities.
"The input we receive will assist us in understanding and representing investor interests," Ms. Anand said.
The panel is seeking comments from a broad range of investors - not only small shareholders.
One subject under review is the new point-of-sale rules on information given to mutual fund investors. Beginning Jan. 1, mutual fund companies will have to produce a "fund facts" document that will be delivered to investors who ask for it. But other stages of the broader plan to improve mutual fund sales disclosure are still under development.
The investor committee will also review whether to champion a proposal to introduce a higher "fiduciary standard" for financial advisers, which would oblige them to act in the best interests of investors. Lawyers, doctors and some other professionals currently face fiduciary" obligations to clients, but there is debate about whether the higher legal standard for advisers would also help investors.
Another priority for the panel is the OSC's focus on enforcement of securities violations, a frequent topic of complaint about the regulator's work. The panel is seeking comments from investors about policies or legal amendments it should champion to improve enforcement.
The committee is also asking for feedback on rules for regulating credit-rating agencies and on new investor initiatives in other countries that could be adopted in Canada.
Ms. Anand said the list of initiatives is intended as a starting point and will be refined and expanded over time. The panel said it would "be helpful" to hear from investors by Jan. 15 but there is no hard deadline and shareholders can offer comments at any time.
For more information about the initiatives and how to provide comments, link here.
Janet McFarland