HALL OF SHAME

SIPA introduced our Brokers Hall of Shame in 1999 on our first website (www.fireinternational.com/sipa). Information was compiled of brokers and brokerage firms that had either been disciplined by the regulators for breaching the rules and regulations, or had received media attention for  inappropriate behaviour. Since that time the regulators have started to publish information regarding disciplines on their websites.

If you want to determine whether your broker or the firm for which he works has been disciplined you should call the regulators in your province and they will tell you. As recently as the late 1990s, the regulators would not reveal this information. However, not only will they release this information, but they also provide information on their websites. 

Bad Broker List

SIPA’s Bad Broker List was first posted in 1999, and provided an alphabetical list of registered representatives disciplined for breaching the rules and regulations, or who had been charged with crime or faced civil litigation. The list was long and growing as names continued to be added. Finally the regulators began to provide this information on their websites. 

Since SIPA introduced the Brokers Hall of Shame the regulators have developed websites and in some cases introduced alphabetical lists of Bad Brokers. The British Columbia Securities Commission (BCSC) was the first to provide an alphabetical list of disciplined persons. The Ontario Securities Commission (OSC) provides an alphabetical list of companies and individuals under Enforcement Proceedings but this does not include registrants disciplined by the SROs.

Brokers in the News

The media appears to be providing more coverage of the investment industry and many firms and registered representatives have received coverage. SIPA has an archive filled with news articles on this subject. Members should contact SIPA for more information.

Disciplines

When registered representatives are investigated as a result of complaints, they may be subject to disciplinary action if there is found to be sufficient evidence that the rules have been breached. Unfortunately for small investors, the industry has operated for years by simple telephone communication, and this can result in no disciplinary action if your registered representative's recollection of events differs from yours.

Hearings

The regulators regularly schedule hearings as part of their investigation into complaints of wrongdoing. These hearings are not always open to the public, but the regulators are now providing advance notice of hearings and some are open to the public. Investors are encouraged to attend a hearing even if it is not your registered representative or his company. To hear what is said by industry representatives during a hearing is a learning experience that will help guide you in your approach to investing.

Trials

There are very few trials compared to the number of complaints and disputes. Although there are many lawsuits initiated, most disputes are resolved prior to reaching the courtroom. The industry seems intent to resolve these issues but not before employing delaying tactics to discourage complainants. By resolving disputes prior to court appearances they are able to avoid informing the public of the details of the dispute.

Victims

The number of victims who have fallen prey to financial predators is astounding. Most victims do not reveal that they have lost their savings. They feel embarrassed that they have lost because they believe that they are amongst a small number of victims. The reality is that there are a large number of victims and the public is not aware. SIPA encourages victims to speak out to help others avoid the same tragedy. This section provides some information regarding victims of financial predators.