ABOUT SIPA

Mission Statement

SIPA has a mission:

1. to aid public awareness of how the investment industry operates;
2. to provide guidance to members who have a complaint about investments with a bank, broker, financial advisor, or other seller of financial products; 
3. and to pursue improvement of industry regulation and enforcement.

Organization

SIPA was incorporated (Ontario corporation number 1327366) as a national non profit organization at the end of January, 1999, with headquarters in Markham, Ontario. SIPA has a five person board of directors: Stan Buell, president; Ed Nelles, secretary; Susan Hamnett, treasurer; Phil Colley, and Peter Taylor. 

SIPA:

The Small Investor Protection Association (SIPA) is a voice for Canadian retail investors. Incorporated as a national non-profit organization in 1999, SIPA advocates for investor protection for investors across Canada.

With head office is in Markham Ontario, SIPA has over 500 members in ten provinces. SIPA speaks out for retail investors and participates on radio programs and TV shows. SIPA participates in media conferences, issues news releases and provides comments to media across Canada to advocate the interests of retail investors.

SIPA makes submissions and presentations to governments, participates in conferences, meets with politicians and task forces, and works to represent Canadians in the fight to change public policy to achieve improved investor protection.

SIPA is supported by members and private donations. SIPA does not receive government grants nor financial support from the investment industry. SIPA is a non-profit organization and not a registered charity and therefore does not have a charitable tax number. SIPA relies upon member support and Canadians like you to make donations, and to participate by taking action.

SIPA asks members and the public to take action by:

• Writing to your local newspaper

• Writing to TV and radio personalities and radio stations

• Calling radio and TV talkshows

• Attending events

• Spreading news to your friend and contacts

• Making donations to SIPA to ensure sustainability

You can make a difference by taking action. ACT now:

• Apply for membership

• Contribute to SIPA

• Take action – contact your member of parliament

Send your donation to:

Treasurer

Small Investor Protection Association

P.O.Box 325

Markham, ON, L3P 3J8

Make your cheque payable to the Small Investor Protection Association.

SIPA Actions:

SIPA acts as a Voice for Small Investors
We define small investors as Canadians who have investments from a few thousand dollars to several million dollars, but do not influence the market or individual share prices and do not have a financial manager on staff. They may invest on their own or may depend upon an investment advisor.

Publications and web site:

SIPA provides a bi-monthly newsletter, the SIPA Sentinel, for members and supporters. The Sentinel provides articles on current issues and addresses those issues that affect small investors.

SIPA provides a website at www.sipa.ca that provides information for the public and has a private section for members. The website was initiated in 1999 and further developed in 2000. Industry Canada invited SIPA to participate in the Canadian Consumer Information Gateway project and now provide links to the SIPA website.

Reports and Submissions:
SIPA prepares reports and regularly makes submissions to governments and regulators, and on April 14^th 2005 appeared before the Standing Senate Committee on Banking Trade and Commerce subsequent to making a submission “It’s a Matter of Trust” on February 14^th, 2005. This report now appears on the Department of Finance website, as well as the SIPA website.

SIPA and the media:
SIPA often appears on TV programs to speak on behalf of retail investors, and regularly talks with journalists that write about the investment industry to represent the voice of retail investors.

Conferences and Task Forces:
SIPA participates in conferences and task forces to act as a voice for retail investors. SIPA participated with the BCSC and OSC Task Forces on de-regulation several years ago. SIPA participates on panels regarding regulation and investor protection including a panel at the OSC Dialogue in 2004 and the OSC Town Hall Meeting in 2005. SIPA was also invited to participate in the Capital Markets Institute Roundtable discussions for the past three years to represent the retail investor.

SIPA's Outreach:
Recognizing that many Canadians are not aware of the many ways that Canadians, and in particular seniors, are losing their savings due to investment industry fraud and wrongdoing, SIPA began an outreach program in 2005 to contact organizations representing seniors and other small investors.

Judy Muzzi, then President of the United Senior Citizens of Ontario (U.S.C.O.) was one of the first to respond and later invited Stan Buell to speak at the U.S.C.O. Annual General Meeting in Kitchener, Ontario on August 29^th, 2005.SIPA made a Power Point Presentation at the Annual General Meeting, addressed the issue of seniors losing their savings due to widespread wrongdoing in the investment industry, and described the impact on victims.  The event was a gathering of executives from seniors groups across Ontario. There was strong interest and SIPA agreed to speak to other groups in Ontario and to continue working with the U.S.C.O.

With interest building Dr. David Yudelman, author of “The Scorpion and the Frog” a report on the investment industry, worked with SIPA and U.S.C.O. to prepare an initial report for a group that includes individuals and organizations called Concerned Candians and Small Investors. It is entitled “Consumers and Investors in the Wild West”. Since then CCSI has made several submissions and presentations to both Ontario and Federal Government organizations and later in 2006 Art Field, president of the National Pensioners and Senior Citizens Federation met with Stan Buell and agreed to work jointly with the U.S.C.O. and SIPA as CCSI. SIPA continues to work with this group making joint presentations and submissions.

In 2007 SIPA was invited by Dan Braniff, founder of the Common Front for Pension Splitting (CFRS) to meet with the board in Collingwood to discuss a possible new single issue. It was decided that the new single issue would be Retirement Security. SIPA is a member of the CFRS which comprises some 22 organizations representing two million Canadians. SIPA is actively involved and participates in CFRS presentations. 

SIPA’s priorities:

Investor Protection:
SIPA believes that the current investment industry regulatory system does not provide adequate investor protection. Although regulators claim to give priority to investor protection the fact is their approach is only preventative and is a balance between protecting investors and making capital available for ventures. Each year Canadian small investors are losing billions of dollars due to widespread industry wrongdoing. In 2004 SIPA published a report “the Small Investors’ Perspective of Investor Protection in Canada”. This report was delivered to Canada’s top leaders and lead to the OSC sponsored Town Hall Event in Toronto, May 31, 2005. Also in 2004 SIPA partnered with CARP to produce a report “Giving Small Investors a Fair Chance”. This report recommends the federal government establish a national Investor Protection Agency with a primary mandate to provide remedial investor protection.

Whistleblower Protection:
SIPA believes that whistleblower protection should be extended to all Canadians and not just to federal civil servants. SIPA has made submissions to the federal government to extend the legislation to include all Canadians working for industry and private enterprise as well as provincial and municipal governments. Providing whistleblower protection will encourage TruthTellers to come forward and enable police and regulators to work effectively.

Accountability and Governance:
The Gomery Commission has alerted Canadians to the lack of accountability and governance that is robbing Canadians on a regular basis. It is not only the federal government but also other levels of government and industry that are failing to provide accountability and governance. This lack of integrity is costing ordinary Canadians to suffer financial loss and increasing tax burdens.

The Accountability Research Corporation report on business income trusts made public in 2005 details how the failure of income trusts to properly account is resulting in many Canadians losing their income and savings.

Standards must be established and enforced by government.

Special Judiciary:
White collar crime has taken second place to violent crime and the courts are overburdened. A special judiciary is needed for white collar crime that understands the impact on the victims lives and how big this problem is.

Aggrieved investors must rely upon civil litigation to obtain justice. The current regulatory system is not providing effective investor protection and the complaints handling offered by the industry and the industry sponsored dispute resolution mechanisms are failing investors. Civil litigation if the final resort for victims to gain justice.

Limitation Periods:
The right to take civil action is being eroded. Several provinces have reduced limitation periods for civil litigation from six years to two years. The limitation period is the time that a victim has from the event that is cause for an action until action must be taken (a statement of claim must be filed). 

Many victims that have lost their savings due to industry wrongdoing are unable to recover in two years to deal with important issues. Those who survive often take more than two years to find their way through the convoluted regulatory system. Therefore two years is not enough. In 2005 SIPA joined with CARP and USCO to demand re-consideration of this issue. The three organizations participated in a media conference and later met with the Ontario Attorney General’s staff. Later in 2005 a petition was read in the legislature. This issue remains to be resolved.