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The Ontario Securities Commission

The Ontario Securities Commission. Investigate before you invest. Financial services oversight in Canada. Securities regulation - provincial responsibility Canadian Securities Administrators Self-regulatory organizations: IDA, MFDA, RS Insurance and insolvency: CDIC, CIPF, MFDA IPC.

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The Ontario Securities Commission

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  1. The Ontario Securities Commission Investigate before you invest

  2. Financial services oversight in Canada Securities regulation - provincial responsibility Canadian Securities Administrators Self-regulatory organizations: IDA, MFDA, RS Insurance and insolvency: CDIC, CIPF, MFDA IPC

  3. Financial services oversight in Ontario Banks OSFI Insurance, Pensions Credit Unions FSCO Capital Markets OSC

  4. OSC mandate Provide protection to investors from unfair, improper or fraudulent practices Foster fair and efficient capital markets and confidence in the capital markets

  5. OSC responsibilities Register people and companies that advise on or trade in securities Ensure timely and accurate disclosure Monitor compliance of public companies Create, update and enforce the rules

  6. Inquiries and complaints Inquiries Complaints Tips OSC Contact Centre 1-877-785-1555 www.osc.gov.on.ca

  7. Investment fraud Millions lost in Ontario each year Constantly evolving Often goes unreported Victims can be unknowing participants Difficult to recover money taken

  8. Investment fraud Affinity fraud: Con artist finds a common interest You trust them because they’re like you Community groups, religious groups, ethnic groups, clubs

  9. Investment fraud Ponzi/pyramid schemes: Investment “returns” are paid using money from new recruits Scheme collapses when new investors become scarce

  10. Investment fraud Accredited investor scams: Unsolicited phone call Investment in pre-IPO company Sign documents that don’t reflect your situation $

  11. Investment fraud • High return, offshore investing: • large return, with little or no risk • money goes outside Ontario

  12. Investment fraud • Investing online: • Phoney websites • Hot tips, bulletin boards, chat groups • Spam e-mail • Phishing

  13. Investment fraud Red flags: Unsolicited investment offer Tax advantages (or avoidance) Guaranteed high returns – no risk Unregistered seller Wiring money offshore

  14. Could it happen to you? Fear of not having enough Desire for big break Unclear financial goals Focus on comfort level, not credentials

  15. Unsuitable investments Do you understand the investment? What are the risks? How do you get your money out? Volatility of business/industry Diversification Borrowing to invest (leverage)

  16. Risk and return

  17. Do your research OSC website – www.osc.gov.on.ca SEDAR – www.sedar.com SEDI – www.sedi.ca Stock exchanges Financial press

  18. Do your research Financial statements Management’s discussion & analysis Prospectus and offering documents Company communications

  19. Do your research • Ask questions and read your documents • Establish realistic goals • Diversify your investments and your sources of advice • Understand what you invest in, and the associated risk

  20. Are they registered? Do your research 1-877-785-1555

  21. Working with an adviser Types of advisers Compensation Opening an account Responsibilities – yours and theirs

  22. Resources • Investor education kit • www.investorED.ca • www.osc.gov.on.ca • 1-877-785-1555

  23. Investigate before you invest

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