OSC to fund FAIR Canada’s day-to-day operating expenses
The Ontario Securities Commission (OSC) announced Nov. 27, that it will provide $3.75 million to FAIR Canada over five years, to assist the organization dedicated to advancing the interest of individual investors.
The allocation form the OSC’s designated fund will be provided to FAIR Canada in annual installments of $750,000 for five years. The OSC says FAIR Canada will use the funds to cover its day-to-day operating expenses.
The funding comes by way of a clause in the Ontario Securities Act which give enforcement panels the power to designate the funds received under settlement agreements and other imposed sanctions, for the purpose of educating investors about the operations of securities markets and financial markets.
The OSC says the designated funds may be allocated to other third parties or used by the commission to educate investors. It adds that at least once a year, OSC staff make recommendations, based on the existing balance of designated funds, regarding amounts that should be set aside for whistleblowers and for investor education initiatives.
FAIR Canada, the Canadian Foundation for the Advancement of Investor Rights, is a national charitable organization provides information and education to the public, governments and regulators about investors’ rights and protections in Canada’s capital markets.
In a statement announcing the funding decision, the OSC’s acting chair and CEO, Grant Vingoe says “the OSC’s financial contribution will provide FAIR with stable funding over the next five years, allowing it to continue its important and valuable investor advocacy and protection work.”
In its own statement announcing the funding, FAIR Canada says the amount will allow the organization to move forward with its strategic priorities, including a renewed focus on policy research. It adds that it will also permit FAIR to recruit additional staff to advance its core objectives.