NDP Finance Critic Michael Prue blasted the Ontario Securities Commission (OSC) today for its abysmal record on cracking down on securities law violations.

“The countless victims of fraud, insider trading, and other securities violations deserve answers as to why the McGuinty government has not stepped up and done enough to protect their interests," said Prue.

“The numbers paint a clear picture of the OSC’s inability to enforce securities law. After adjusting for population, the United States Securities and Exchange Commission’s enforcement of securities law is 10 times greater than the OSC’s, and 20 times greater on insider trading laws,” he added, referring to a 2006 study commissioned by the Task Force to Modernize Securities Legislation in Canada.

Today, Prue grilled the head of the Ontario Securities Commission, David Wilson, about the lack of protection for investors at the Standing Committee on Government Agencies at Queen’s Park. The responses received from David Wilson and the OSC were wholly inadequate.

“At a time when markets have plummeted 40 per cent, Ontarians are looking to their government to protect their investments from fraudulent practices, strengthen oversight and improve accountability,” Prue said.

Since 2004, independent reports have made the following recommendations that have not been implemented by the OSC or the McGuinty Liberals:

· The OSC’s dual role as prosecutor and adjudicator of securities cases creates the appearance of a conflict of interest – these functions should be separated (recommended by Osbourne Report of the Fairness Committee, commissioned by the OSC);

· The establishment of a task force to review the role of self-regulating organizations, including whether their trade association and regulatory functions should be separated (All-Party Five Year Review of the Securities Act);

· Stronger oversight of the OSC by legislators, including the ability to compel witnesses to appear (All-Party Five Year Review of the Securities Act).

“It is time we move the securities law discussion out of the board room and into the legislature for a truly open and transparent accountability,” said Prue.