Securities investigations would be made easier by new Alberta law

Alberta is making changes to securities legislation to make it easier for stockbrokers and mutual funds salespeople to be investigated, thereby better protecting investors from bad apples.

Bill 13, introduced in the legislature Monday by Finance Minister Joe Ceci, would give the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA) the power to compel evidence and testimony from witnesses during investigations.

The bill would also make the two organizations immune from civil lawsuits.

Alberta already has regulations allowing the IIROC and MFDA to enforce fines through the courts.

Andrew Kriegler, president and CEO of IIROC, said these three measures give his organization the "tool kit" needed for enforcement.

"That's the three pieces that we need, the three legs of the stool," he said. "And with this introduction, if this legislation passes, then we'll have them. And we're very excited about them."

'Important deterrence'

Wanda Morris, vice-president of advocacy for the Canadian Association of Retired Persons, supports the changes called for in Bill 13 but said there is more governments can do to improve investigations.

"While today's legislation, if passed, will provide some important deterrence, what it doesn't address is restitution to the individual investor," Morris said.

Money from fines levied at the conclusion of investigations doesgo back to the regulatory organizations, she said.

"We support that, but we'd also like to see recompense for the individual investors who have been wronged," Morris added.

The Alberta Securities Commission has delegated the authority to investigate complaints about investment advisers, stockbrokers and mutual funds salespeople to their respective governing organizations.

Alberta 1st province to have all 3 measures

If Bill 13 is passed, Alberta would be the first province to have all three measures in place. Quebec is expected to table legislation this spring to update its securities legislation.

Despite thepatchwork of regulations across the country, Kriegler said his organization has no opinion on the need for a national securities regulator as they work for securities commissions in each province.

He said there has been momentum across the country towards making these changes.

"We will continue to work with securities commissions, to whom we report, and their governments across the country to invest the investor protection agenda and we're not going to stop until we get there," Kriegler said.