Supreme Court decision disallows National Securities Regulator – Dashes hope for better investor protection


December 22, 2011

CARP is disappointed with the Supreme Court decision to disallow National Securities Regulator – dashes hopes for better Investor Protection – calls on provincial regulators to show they can do better

TORONTO, ON: CARP is disappointed with the Supreme Court decision that will effectively stop the National Securities Regulator. The proposed agency had promised better investor protection – something that CARP members have demanded.

The National Securities Regulator had been expected to include an enforcement and investigation function to provide a strengthened, more coordinated regulatory and criminal enforcement regime to better protect investors from misconduct in Canada’s capital markets.

“CARP members had wanted to see the National Securities Regulator established because of the promised improvement in investor protection, including better investigation, mediation and restitution. Now the provinces, especially those that opposed the national body must step up and demonstrate how they would replace that vital investor protection and coordinate their efforts to ensure national uniformity. For too long, individual investors have been left largely to their own devices and even successful prosecutions do not make them whole. For seniors, especially, the losses can be life changing since they do not have enough time to recover their financial stability”, said Susan Eng, VP Advocacy for CARP.

CARP has called for a comprehensive investor protection function within the National Securities Regulator – and now will be calling for it within the provincial regulators – which would include:

  • a dedicated agency with specialist knowledge
    • to receive complaints
    • investigate
    • support prosecutions
  • tribunal with authority
    • to order restitution
    • to undo [rescind] transactions
    • to order compliance
  • compensation fund to pay the restitution
  • new criminal charges
    • presumably with new investigation capacity
  • access for retail investors
    • local offices
    • mediation services
    • investor advisory panel

CARP members polled have strongly endorsed a national initiative. They see value in having a single regulator and indicated even greater support for the agency to have enforcement and restitution powers.

CARP Poll™ Nov 4, 2011

There is substantial majority agreement Canada should have a single securities regulator (86%), and more than half express this in the strongest terms (57%).

Currently, Canada has 13 different provincial and territorial securities regulators where the US has one (The SEC). How much do you agree Canada should have a single national securities regulator to regulate stock trades and enforce regulations across the country? 

   Agree strongly 57%
   Agree 28%
   Disagree 5%
   Disagree strongly 1%

There is even more agreement this securities regulator should have the power to enforce and punish (92%), and three quarters agree in the strongest terms (75%). 

How much do you agree this national securities regulator should have the power to charge dishonest brokers and collect compensation for their victims from them? 

   Agree strongly 75%
   Agree 18%
   Disagree 1%
   Disagree strongly   –


CARP is a national, non-partisan, non-profit organization committed to advocating for a New Vision of Aging for Canada, social change that will bring financial security, equitable access to health care and freedom from discrimination. CARP seeks to ensure that the marketplace serves the needs and expectations of our generation and provides value-added benefits, products and services to our members. Through our network of chapters across Canada, CARP is dedicated to building a sense of community and shared values among our members in support of CARP’s mission.

For further information, please contact:

Michael Nicin 416.363.2277 x. 230

Policy Development and Government Relations  [email protected]



Susan Eng

Vice President Advocacy

[email protected]

CARP, A New Vision of Aging for Canada

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