Not sure if this still is effective, and not sure if the BCSC has one, and don,t readily have time to search, but I do think its an important instrument that should be practised by all regulatory bodies. Especially in our case where we see clear violations, no enforcement, is the investigation over and nothing has been found? Investors have the full right to know such things.
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Confirmation of existence of investigation, “will provide investors with information that may be useful”
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Friday, October 15, 2004
By James Langton
The Ontario Securities Commission has issued guidelines its staff should follow in disclosing the existence of ongoing investigations.
Typically, the OSC does not publicly disclose the existence of investigations, or details of its investigations. It does this both to protect the course of the investigation and the reputation of those being investigated.
However, the OSC notes that public confirmation of the existence or nature of an investigation, “will provide investors with information that may be useful in assessing the risks of certain investments”, and that it may also, “foster confidence in the capital markets by affirming that enforcement action is being taken in relation to potential breaches of the Securities Act or conduct contrary to the public interest. Therefore, there are cases where the value in disclosing the existence of an investigation will outweigh any risks associated with disclosure.”
The notice lists five exceptions to its general policy of not disclosing investigations: investor protection outweighs factors favouring non-disclosure (for example, to stop an ongoing scam); criminal law authorities are investigating a market participant for possible criminal misconduct at the same time as a related OSC investigation; the investigation relates to conduct or issues “which are substantially in the public domain and there are credible allegations which engage the enforcement jurisdiction of the OSC”; where it has been disclosed that another regulator or law enforcement agency has an investigation related to the market participant; and, the OSC may confirm an investigation where a market participant has already disclosed an OSC investigation, or where it falsely denies the existence of an investigation.
The OSC says that, absent exceptional circumstances, the market participant will be given an opportunity to make an announcement about the investigation before OSC staff take any steps to disclose the investigation. And, at the completion of an investigation which has been publicly disclosed, if no proceedings are to be taken, OSC staff will notify the market participant of this fact.
http://investorvoice.ca/PI/1301.htm
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