If I rob a bank, I find myself in conflict with the criminal code of Canada.
If a bank or financial institution wishes to rob consumers in some way, they can go to our own Crown Corporation, The Alberta Securities Commission, and apply for an exemption to the law.
Why? Because investments are handled by another set of laws, called the Securities Act, and the police are not always informed of criminal violations in this “other” area. The police are assuming, perhaps incorrectly, that the provincial securities commission has matters in hand.
There were thousands of “exemptions to the law” granted in Alberta over recent years. Many of them involve investments you hold. Stocks, mutual funds, Royalty Trusts., etc. All of them granted without public input. No involvement of a judge, no public notice, and no consumer representation in the decision making process.
The Alberta Securities Commission refuses to answer how some exemptions are in the public interest. Some have truly hurt the interests of consumers. This same crown corporation, which is responsible to you, the taxpayer, and supposedly answerable to the legislature, recently spent over $1 million dollars on legal fees to try to avoid audit by the Alberta government’s auditor. It was discovered that they had something to hide.
As a consumer you will get more notice if your neighbor plans to build a garage too close to your property, than you will get if your financial advisory firm chooses to dump tainted products on you using a legal exemption. Because of legal tricks, Canada is in second place behind only China, in damaging its reputation by allowing the manufacture of known tainted products. Investment products are the tainted goods specialty of Canada. Legal exemptions and self-regulation are two major causes. (If you think you have been gouged by the electrical industry “de-regulation”, just try and imagine what goes on behind the curtains in your financial industry where they are allowed to “self-regulate”?) If you are having a hard time picturing it, just imagine the your money and the “honor system” handed to men like Conrad Black.)
This is part of the many reasons why Canadians suffer from “One Million Frauds”, (Globe and Mail Oct 3, 2007) with only one person convicted until the end of last year (Canadian Business editorial Aug 13/27 2007). It also may help explain why ex RCMP IMET commercial crime experts say that Canada is a “A Good Country for Crooks”, (Canadian Business Sept 24, 2007)
The United States is coming to grips with subprime mortgages and mortgage fraud, Enrons, Worldcom, Tyco, etc., which are costing the United States more than the entire 1929 market crash and resulting depression. These investments, frauds, crimes, and damages are long infecting Canada as well. With no punishment here. Remember, we are on the “honor system”.
Will your new role government now help bring about a Provincial Inquiry into violations of the public trust by our Alberta Securities Commission, to see if these claims have merit? I can assure you that a Provincial Inquiry will turn up issues that are costing Albertan’s billions. I can also assure you that if you fail to call for an inquiry, that the conditions that allow this will live on.
From: Larry Elford, (former CFP CIM FCSI Associate Portfolio Manager, retired)
founder of http://www.investoradvocates.ca/ Representing the interests of several hundred ethically proven investment industry professionals, and several hundred thousand investment consumers.lelford@shaw.ca
