IAP Information: Further Responses to Enquiries on the OSC Investor Advisory Panel

September 2, 2010

Further Responses to Enquiries on the OSC Investor Advisory Panel


Does the Panel’s work include engagement with self-regulatory organization (SRO) issues?

The focus of the Panel is to contribute to the development of OSC rule and policy initiatives. The Panel may wish to comment on specific policy initiatives and priorities that touch on operations of SROs.

Why does the Panel have seven members?

It is expected that the Panel will consult with a broad range of investors and will effectively engage in outreach activities with the goal of soliciting the views of as many investors and organizations representing investors, as possible.

How does the Panel remain independent from the OSC?

The Panel itself will determine which issues and priorities to comment on. The Panel will select the issues that are believed to have significant investor impact. The Panel Chair will have control over the content of the Panel’s page of the OSC website.

The Panel will conduct its deliberations without involvement from the OSC. It will also consult widely with investors as determined by the Chair. Comment letters prepared by the Panel will be submitted by the Panel Chair to the OSC and posted on the OSC website. The Panel will also prepare an Annual Report that will describe the work of the Panel. The Annual Report will be made public.

The Panel Chair may invite OSC staff to speak to specific issues and to provide insights and clarification about the initiatives it is considering; otherwise the meetings will be closed to staff.

What financial commitment is the OSC making to the Panel?

Members will be remunerated for their work on the Panel. Members will receive $275 for attending meetings and will be paid $275 per day for time spent preparing for a meeting or for follow-up work after a meeting, up to a maximum of three days per meeting. The Chair will be paid $550 for meetings and $550 per day for pre and post meeting work.

The OSC has provided the Panel with a yearly budget of $50,000 to facilitate its ability to carry out its mandate. It is anticipated that these funds will be used for research, outreach, consultation and preparation of reports and submissions. The Panel Chair will recommend how the funds will be allocated.

The OSC is also providing up to $30,000 to cover travel expenses in the event that Panel members reside outside of the Greater Toronto Area or if the Chair or other Panel members are required to travel to meet or consult with investors.

The OSC Secretary’s office will provide administrative support to the Panel. A full time Administrator is available to act as secretary to the Panel and will support the Chair and other Panel members by facilitating meetings, assisting with the preparation of meeting agendas and minutes and acting as a resource and liaison to other staff at the OSC if requested by the Panel Chair.

After the Panel develops experience, it will be free to request additional resources to support its work plan in future years.

What input did investors provide in creating the Panel?

In addition to the views that were expressed by investors at the Town Hall Meetings, the Commission considered submissions that were made to the Standing Committee on Government Agencies from individuals and groups representing investor interests. Investors have also expressed their views regarding the need for an investor voice in policy formation in telephone and written correspondence to the OSC’s Contact Centre.

The guiding principles that the OSC incorporated into the design of the Panel that were directly attributable to investor input were:

  • The Panel must represent a broad and diverse range of investor interests
  • The Panel must be independent of the Commission
  • The Commission should provide funding to the Panel
  • Panel members should be remunerated
  • The Panel should have a direct conduit to the Commission
  • The Panel needs to be free to choose which Commission policy initiatives it will consider
  • There should be an Investor Advisory Panel section on the OSC website
  • The Panel should be provided with administrative support

In addition to investor input, the Commission researched similar advisory panels that were operational in other jurisdictions.

The Panel is free to make recommendations to the Commission regarding its mandate or Terms of Reference when it prepares its Annual Report to the Commission. The report will be published on the OSC website.

How is the Panel accountable to the Ontario Securities Commission?

The Panel has been given a specific mandate and Terms of Reference to focus its work. The Panel should produce the following deliverables:

  • Meet at least four times per year
  • Provide written responses to relevant notices and requests for comments that are published by the Commission in respect of proposed rules and policies, concept papers and discussion drafts
  • Comment on the Commission’s proposed annual Statement of Priorities
  • Respond to Commission requests for advice and comment
  • Prepare an Annual Report on its activities for the preceding year
  • The Panel Chair may be required to attend a Commission meeting to report on matters specified by the Commission

The Commission is committed to the success of the Panel and has provided financial and administrative support so as to receive input reflecting the views of a broad range of investors. The Commission must consider comments from interested parties whenever it contemplates new rules and policies. It is anticipated that the input from the Panel will be critical in formulating rules that are designed to deliver protection to investors. It is also anticipated that Commission staff will provide commentary about the consideration it gave to the Panel’s comments at the time it publishes a final rule or policy.