Canadian investors shortchanged by lax rules

Green Party MPs would also push the federal government to work with the provinces to take steps that would make it easier for shareholders to hold firms accountable in the event of a misrepresentation

(Toronto, Friday, 6 January 2006) - Canadian investors deserve stronger protection and a more transparent investment market, said Green Party of Canada leader Jim Harris as he called both for a National Securities Regulator and tougher whistle-blower protection in Toronto.

"There are currently 17 securities regulators across the country - one for each province and territory, plus four more specialized bodies. Each has differing rules and varying degrees of cooperation with each other. The resulting bureaucratic nightmare makes it harder for Canadians to feel comfortable knowing that their investments are safe and for publicly traded companies to operate on a level playing field," said Harris.

Pointing to sagas such as Bre-X and Manitoba's Crocus scandal, Nortel accounting irregularities and the recent collapse of Norbourg Investments in Quebec, Harris noted that too often it's the average citizen who is left holding the losses, individuals who in many cases are investing for their retirement.

"On one hand Canadians are not well-served by the regulatory systems that currently exist in Canada," said Harris, "while on the other Canadian companies also pay a price for excessive layers of regulatory filings." Harris noted that a handful of corporate 'bad apples' can too easily exploit the myriad rules and jurisdictions to further their own ends.

Green Party MPs would also push the federal government to work with the provinces to take steps that would make it easier for shareholders to hold firms accountable in the event of a misrepresentation. Such a groundbreaking law was recently introduced in Ontario, and the Green Party feels that comparable laws in all provinces would promote a fair and stable investment culture in the country. The Ontario law ensures that investors will have the right to recoup losses when firms make misrepresentations in all documents and public comments and not just proxy circulars.

"A uniform set of regulations and enforcement will be good for Canadians no matter where they live," Mr. Harris said. "Not only will it help small investors regain their trust in the stock market; it is also important in terms of our values as a country."