CANADIAN SECURITIES ADMINISTRATORS (CSA)
This from the CSA website: “Securities regulators from each of the 10 provinces and 3 territories in Canada have teamed up to form the Canadian Securities Administrators (CSA). The CSA protects Canadian investors from unfair, improper, or fraudulent practices and fosters fair and efficient capital markets.”
This is one source for consumer/investors to find information about the provincial securities administrators. It also indicates the recognition that a national regulator for Canada is needed as they attempt to harmonize the various provincial regulators, in an attempt to treat all Canadians equally.
One of the most important facets of this website is found under enforcement. Although the BCSC has provided an alphabetical list of disciplined persons for many years, most of the other provincial securities administrators did not. Some provided information on disciplined persons through search mechanisms which were found to be not always user friendly, thus making it difficult for consumer/investors seeking information.
Consumer/Investors should refer to the alphabetical Disciplined Persons list to determine whether their registered representative has been disciplined or whenever
ABOUT THE CSA (from the CSA website)
“The 10 provinces and 3 territories in Canada are responsible for securities regulations. Securities regulators from each province and territory have teamed up to form the Canadian Securities Administrators, or CSA for short. The CSA is primarily responsible for developing a harmonized approach to securities regulation across the country.
The CSA brings provincial and territorial securities regulators together to share ideas and work at designing policies and regulations that are consistent across the country and ensure the smooth operation of Canada's securities industry. By collaborating on rules, regulations and other programs, the CSA helps avoid duplication of work and streamlines the regulatory process for companies seeking to raise investment capital and others working in the investment industry.
In recent years, the CSA has developed a the “passport system" through which a market participant has access to markets in all passport jurisdictions by dealing only with its principal regulator and complying with one set of harmonized laws. It is a major step forward in improving Canada’s securities regulatory system by providing market participants with streamlined access to Canada’s capital markets.
The CSA's impact on most Canadians comes through its efforts to help educate Canadians about the securities industry, the stock markets and how to protect investors from investment scams.
The CSA provides a wide variety of educational materials on securities and investing. It has produced brochures and booklets explaining various topics such as how to choose a financial adviser, mutual funds, and investing via the internet. All CSA materials are available in the Investors’ Tools section of the CSA Website and through your local securities regulator.
To give Canada a securities regulatory system that protects investors from unfair, improper or fraudulent practices and fosters fair, efficient and vibrant capital markets, through the developing of a national system of harmonized securities regulation, policy and practice”
The CSA website provides a section INVESTOR TOOLS which includes information for the consumer/investor and is well worth a visit. You will find current information, brochures and tools to help you learn about your rights and responsibilities as an investor, how to protect your money and how to avoid frauds and scams. It includes “Investing Guides, Avoiding Fraud, and Related Links” as well as other information.
ENFORCEMENT
The CSA website provides an excellent summary of securities enforcement and the key players in the game of enforcement, as well as the alphabetical list of disciplined persons. All consumer/investors are encouraged to visit the alphabetical list of disciplined persons. Check out the details of some of the disciplines so you will better understand the types of wrongdoing that can cause investors grief.
“Overview
Investigation and enforcement are core CSA activities. By identifying contraventions of securities laws or conduct in the capital markets that is contrary to the public interest, and by imposing appropriate sanctions, the CSA deter wrongdoing, protect investors, and foster fair and efficient capital markets in which investors have confidence. Enforcement personnel of CSA member authorities deal with potential securities law violations identified through internal CSA compliance and surveillance or as a result of complaints from market participants and the public.
The CSA’s enforcement activity complements that of other agencies, with which we cooperate and share information on matters of mutual interest. This allows the CSA to focus activities and resources where most appropriate.
Key players
Securities tribunals
Enforcement personnel of CSA members can bring matters before a specialized administrative tribunal, which in most jurisdictions is the local securities commission. Such tribunals can impose sanctions including orders that trading in securities cease or that exemptions are unavailable, bans on individuals acting as corporate directors and officers, mandatory filing of specified disclosure, monetary administrative penalties and payment of costs. Enforcement personnel often negotiate settlement agreements under which those alleged to have contravened securities laws submit to agreed sanctions. In some jurisdictions settlement agreements are approved by staff; in other, cases they are presented for the approval of the local securities commission or tribunal. Members act jointly in approving some settlements and taking enforcement action.
SROs
Self-regulatory organizations (SROs) oversee regulated conduct of their members. For example, if the Investment Industry Regulatory Organization of Canada (IIROC) finds that a member has contravened its by-laws, it can impose monetary penalties and suspend or revoke IIROC membership and registration under securities laws. Since its merger with Market Regulation Services (RS), IIROC is also responsible for imposing sanctions for contraventions of the Universal Market Integrity Rules (“UMIRs”), including fines and suspension or restriction of market access. The Mutual Fund Dealers Association of Canada (MFDA) assumes a similar role for members in its sector. It The Chambre de la sécurité financière oversees some securities intermediaries and financial planners in Quebec.
Exchanges
Exchanges monitor compliance, by listed companies, with the terms of Exchange listing agreements and policies. Where appropriate, they can deny pre-approval of certain transactions, require corrective disclosure, halt or suspend trading and, in egregious cases, terminate a listing.
Police
The RCMP and local and provincial police investigate commercial crimes, including market fraud. The federal government recently established IMET (Integrated Market Enforcement Teams, with combined RCMP and civilian membership) to target major economic crime.
Courts
Provincial and territorial Attorneys-General or equivalents can bring contraventions of securities laws, as well as of criminal laws, before a court. In some provinces, enforcement personnel of CSA members can also bring securities law contraventions before a court. Fraud and other contraventions of the Criminal Code can attract stiff penalties including large fines and imprisonment. The sanctions available to courts for securities law violations are also more extensive than those available to securities regulatory authorities, including imprisonment.”
Members of the CSA have sanctioned the following individuals. This list is intended to assist the public and the securities industry in conducting due diligence.
Regulation
