According to an article recently published by Wealth Professionals magazine, as of March 2015, the Canadian Regulators (in charge of the Canadian Securities industry) are owed nearly $900,000,000 million in unpaid fines. These funds are a combination of fines and disgorgement/restitution that wrongdoers are issued at the close of their hearings. Funds that are NOT considered fines (that are included in orders) are suppose to be returned to investors (or people directly affected by the actions of the wrongdoer). As an example, the Panel in our matter ordered a $500,000 fine and $517,500 in disgorgement/restitution. Unfortunately, there is no break down (out of the $900,000,000) of what is actually fines and what is owed to the investors.
The BCSC leads the way at over $340,000,000 million in unpaid fines and disgorgement/restitution which is very unsurprising. Again, the numbers in the article only cover up to March 2015 and several millions of dollars (including our $500,000 + $517,500) has been added since this time so it is fair to say the number is far greater that $340 million.
We will take a moment and congratulate the BCSC for this distinct honor of being owed the most of any regulator in Canada – over 1/3 of the total amount owed across Canada. Under changes to the BC Securities Act in November 2013, “the BCSC must make funds (that have been paid to the Commission) available to eligible investors who lost money as a result of Respondent misconduct”. Again, they do not distinguish as to the difference of funds issued as fines or disgorgement/restitution. In our matter, are investors only entitled to the $517,500 or the $500,000 as well? I encourage anyone that has an interest to call the BCSC and ask them this question. And ask them who gets money first – if we paid the commission $400,000 tomorrow – who would get it? Them or the former investors in FCC and DCF? And do THEY have to wait 36 months (see below) to get their piece of the pie? Their number for inquiries is 604-899-6854 or call the main switchboard at 604-899-6500 and the lovely receptionist will put you through to the right department to have these questions answered. The BCSC is an organization FOR the people so you ALL have a right to know answers to these basic questions…please take the time.
Now, I hope most of you are sitting down reading this – are you ready for the real kicker here? YOU HAVE TO WAIT UPWARDS OF 36 MONTHS TO GET YOUR PROPORTIONATE PERCENTAGE OF THE FUNDS BACK….AND THATS ONLY AFTER YOU FILL OUT A FORM APPLYING FOR ELIGIBILITY!
Take a look for yourself:
http://www.bcsc.bc.ca/Enforcement/Returning_Funds_to_Investors/
And please note, out of the 340,000,000+ million they are owed; and since they implemented the changes to the Act in 2013, they have seized….
…are you ready?….
….a whopping $156,061.34 from Respondents. This is not even .0004590 cents on the dollar! Tell us again how this government organization is protecting the people of this wonderful province of British Columbia? These are your government officials that have put these people in charge – if you or I had this little success doing our jobs we would be terminated instantly!
Its time for change with these failing regulators. And people affected (on both sides) need to unite to make these changes – and stop the division that will ruin any success we are able to obtain.
Link to the SIPA Article…. CLICK HERE