IDA announces new restitution plan

The funds must be available; The funds must be available; The loss can be clearly traced to the misconduct; Individuals who were wronged and are entitled to restitution can be easily identified; The amount of money owed can be easily ascertained; and, The fund can be simply and efficiently distributed. Still, Oliver concedes, “these circumstances […]

By Mark Brown | May 16, 2006 | Last updated on May 16, 2006
3 min read
  • The funds must be available;
  • The loss can be clearly traced to the misconduct;
  • Individuals who were wronged and are entitled to restitution can be easily identified;
  • The amount of money owed can be easily ascertained; and,
  • The fund can be simply and efficiently distributed.

    Still, Oliver concedes, “these circumstances will not match many of the cases that come forward.” The best example of this would be the market timing cases that paid back $7.2 million to unitholders. This could apply to individuals as well as to firms, provided all of the criteria were met.

    After his speech, Oliver noted that Manitoba introduced legislation about four years ago which gave the commission the right to provide similar restitution, however of the 40 cases examined under the new rules, only one case met all the criteria. “That demonstrates the difficulty in finding the right circumstances,” he says. “We ought to do it where we can.”

    Next month, the IDA will take over as chair of the International Council of Securities Associations, which represents SROs and industry associations from the world’s largest capital markets.

    Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

    (05/16/06)

    Mark Brown

    • The funds must be available;
    • The loss can be clearly traced to the misconduct;
    • Individuals who were wronged and are entitled to restitution can be easily identified;
    • The amount of money owed can be easily ascertained; and,
    • The fund can be simply and efficiently distributed.

    Still, Oliver concedes, “these circumstances will not match many of the cases that come forward.” The best example of this would be the market timing cases that paid back $7.2 million to unitholders. This could apply to individuals as well as to firms, provided all of the criteria were met.

    After his speech, Oliver noted that Manitoba introduced legislation about four years ago which gave the commission the right to provide similar restitution, however of the 40 cases examined under the new rules, only one case met all the criteria. “That demonstrates the difficulty in finding the right circumstances,” he says. “We ought to do it where we can.”

    Next month, the IDA will take over as chair of the International Council of Securities Associations, which represents SROs and industry associations from the world’s largest capital markets.

    Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

    (05/16/06)