OSC Perspectives
OSC Consults With Stakeholders At Dialogue 2011
November 10, 2011 -
OSC Chair Howard Wetston’s desire for “an important forum to consult with our stakeholders” led him to bring back the Dialogue stakeholder conference, on November 1, 2011.
More than 300 attendees heard Mr. Wetston, in his opening remarks, speak on subjects that included regulating over-the-counter derivatives, the OSC’s review of emerging-market issuers and the need for a national securities regulator. He also referred to the OSC’s review of the Maple Group’s proposed acquisition of TMX Group, and the complex issues involved in this transaction.
(For the OSC Dialogue 2011 agenda and audio files of the presentations, click here.)
During a plenary session on market structure moderated by OSC Executive Director Maureen Jensen, panelists discussed the tremendous challenge to regulation brought on by the rapid advancement of technology in capital markets. Kevan Cowan, President of TSX Markets, said the rate of technological change in the past 15 years is greater than the change in the previous 200 years.
There was a focus on investor issues at the conference, with both a morning plenary hosted by Vice-Chair Mary Condon, and an afternoon breakout session moderated by Susan Silma, Director of Compliance and Registrant Registration, and Rhonda Goldberg, Director of Investment Funds. For more on the two investor panels, please see OSC Investor News.
Tom Atkinson, OSC Director of Enforcement, speaking at the morning’s third plenary hosted by OSC Vice-Chair James Turner, said he expects about 30% of the enforcement proceedings started by the OSC in the coming year to be quasi-criminal in nature. With respect to insider-trading investigations, Mr. Atkinson said the OSC has a new tool to examine “connectedness” in the markets, which he called “an advanced Facebook.”
The audience heard from Ontario Finance Minister Dwight Duncan, who discussed the need to modernize regulation to protect investors, and the need for regulators to make sure that markets work despite economic uncertainty. Mr. Duncan noted that the financial-services sector directly and indirectly employs 650,000 people in Ontario and said he wants “to establish Toronto as a leading hub of financial activity” in the world.
Lunchtime speaker Ian Russell, President and CEO of the Investment Industry Association of Canada, talked about the issues and challenges facing investors and the investment industry during times of economic uncertainty. Mr. Russell stressed that regulators need to continue to reform the structure of markets to help to avoid national and global market shocks.
There were two other breakout sessions in the afternoon. The panel on regulatory outlook was moderated by Monica Kowal, OSC General Counsel, and included Tula Alexopolous, Director, Office of Domestic and International Affairs, and Kevin Fine, Director, Derivatives. Topics included the OSC’s emerging-markets review, how the financial crisis of 2007-08 has been a catalyst for regulatory reform and the effort at the OSC to begin to regulate OTC derivatives.
The afternoon panel on mergers and acquisitions heard a detailed discussion on the use of defensive tactics in takeover battles and the role of the OSC in those kinds of situations. Naizam Kanji, Deputy Director, Corporate Finance, suggested that regulators may simply set the framework for dealing with poison pills and leave it to a company’s board and shareholders to determine specific details. This panel was moderated by OSC Vice-Chair James Turner and included William Braithwaite, Senior Partner at Stikeman Elliott.
To be informed about future Dialogue events, please send an email message to dialogue@osc.gov.on.ca.
More than 300 attendees heard Mr. Wetston, in his opening remarks, speak on subjects that included regulating over-the-counter derivatives, the OSC’s review of emerging-market issuers and the need for a national securities regulator. He also referred to the OSC’s review of the Maple Group’s proposed acquisition of TMX Group, and the complex issues involved in this transaction.
(For the OSC Dialogue 2011 agenda and audio files of the presentations, click here.)
During a plenary session on market structure moderated by OSC Executive Director Maureen Jensen, panelists discussed the tremendous challenge to regulation brought on by the rapid advancement of technology in capital markets. Kevan Cowan, President of TSX Markets, said the rate of technological change in the past 15 years is greater than the change in the previous 200 years.
There was a focus on investor issues at the conference, with both a morning plenary hosted by Vice-Chair Mary Condon, and an afternoon breakout session moderated by Susan Silma, Director of Compliance and Registrant Registration, and Rhonda Goldberg, Director of Investment Funds. For more on the two investor panels, please see OSC Investor News.
Tom Atkinson, OSC Director of Enforcement, speaking at the morning’s third plenary hosted by OSC Vice-Chair James Turner, said he expects about 30% of the enforcement proceedings started by the OSC in the coming year to be quasi-criminal in nature. With respect to insider-trading investigations, Mr. Atkinson said the OSC has a new tool to examine “connectedness” in the markets, which he called “an advanced Facebook.”
The audience heard from Ontario Finance Minister Dwight Duncan, who discussed the need to modernize regulation to protect investors, and the need for regulators to make sure that markets work despite economic uncertainty. Mr. Duncan noted that the financial-services sector directly and indirectly employs 650,000 people in Ontario and said he wants “to establish Toronto as a leading hub of financial activity” in the world.
Lunchtime speaker Ian Russell, President and CEO of the Investment Industry Association of Canada, talked about the issues and challenges facing investors and the investment industry during times of economic uncertainty. Mr. Russell stressed that regulators need to continue to reform the structure of markets to help to avoid national and global market shocks.
There were two other breakout sessions in the afternoon. The panel on regulatory outlook was moderated by Monica Kowal, OSC General Counsel, and included Tula Alexopolous, Director, Office of Domestic and International Affairs, and Kevin Fine, Director, Derivatives. Topics included the OSC’s emerging-markets review, how the financial crisis of 2007-08 has been a catalyst for regulatory reform and the effort at the OSC to begin to regulate OTC derivatives.
The afternoon panel on mergers and acquisitions heard a detailed discussion on the use of defensive tactics in takeover battles and the role of the OSC in those kinds of situations. Naizam Kanji, Deputy Director, Corporate Finance, suggested that regulators may simply set the framework for dealing with poison pills and leave it to a company’s board and shareholders to determine specific details. This panel was moderated by OSC Vice-Chair James Turner and included William Braithwaite, Senior Partner at Stikeman Elliott.
To be informed about future Dialogue events, please send an email message to dialogue@osc.gov.on.ca.
