I refer to the problem faced by the "Little" investor who, when given bad advice by his/her Investment Advisor who works for a large (Canadian) Investment/Banking Firm and suffers a substantial financial loss, is forced to take the very expensive "Civil Court" route to prove his/her case of bad management on the Investment Bank/Advisors part.

I know that, presently, the Self Regulating Organizations are each responsible for policing their own industry, and that the Individual Securities Commissions in each Province have the responsibility and the authority to investigate (and issue fines etc.) to individual Investment Adviser(s) and the subject Firm, including costs: but where does that leave the "Little" investor who brought the complaint forward to the Commission in the first place?

Even if bad management practices are proven through the "Commissions" investigation, and the individual and the Firm are eventually fined for bad management practices or Breach of Regulations, the "little" investor, after providing all the details of the case to the "Commission", is still left out in the dark. Under the present regulations, he/she still has no chance of recouping his/her losses because the "Commission" has no teeth to order compensation directly to the individual who provided all the pertinent information to prove the case against the Advisor and the Firm. So, why provide the "Commission" with the details of your complaint, when there is no chance of compensation? The "little" investor's only recourse for compensation is through a costly Civil Court case.

As you can see by now, I do not think that the present securities regulatory structure enhances the "Effectiveness of the enforcement of the regulations", because they appear to me to be heavily weighed in favour of the "Self Regulating Organizations", the large investment firms and their employees, allowing the Provincial Securities Commissions" to police (self investigate) their own industry, with little or no power given to Commissions to protect the "Little" Investor's rights for compensation when the Investment Firms and their employees are found guilty.

To answer your question - Are investigation and enforcement activities undertaken in a manner which enhances investor confidence in market integrity? I personally do not think so, at this time, because they are too one-sided.

James Lambie