In its effort to protect Nova Scotian investors and capital markets, the Nova Scotia Securities Commission investigated 67 complaints and issued $632,500 in administrative penalties in 2009.
The commission concluded nine cases against 10 defendants that included one disclosure violation, six cases involving registrant misconduct, and two cases of conduct not in the public interest.
These figures and more were released today as a part of the Canadian Securities Administrators (CSA) 2009 Enforcement Report. (The Nova Scotia Securities Commission is a member of the CSA.)
The report shows actions by Canadian securities regulators resulted in more than $153 million in fines and administrative penalties against individuals and companies in 2009, compared with $12.5 million in 2008. Because of the inter-provincial nature of capital markets, proceedings and prosecutions in other provinces have an impact on Nova Scotia markets and investors.
What do these numbers mean to Nova Scotian investors? We hope they tell you that there is an organization actively working to provide protection to investors, and working to ensure that the capital markets in this province operate fairly and efficiently.
A recent national survey showed that 41 per cent of Nova Scotians said they have been approached with some form of investment fraud, but less than a third actually reported it. When asked who they would report the incident to, 63 per cent indicated the RCMP and 37 per cent said local police. Only 17 per cent said they would go to a financial regulator.
Many concerns about investing and advisor conduct are not criminal issues, and so not in the jurisdiction of the police. To report a complaint to the securities commission, go to our enforcement web page, or call 902-424-4558.
The full report can be found on the Nova Scotia Securities Commission’s website, under “What’s New – Enforcement.”