"I sleep well at night."

So answers OSC chairman, David Wilson, in response to the question, "What keeps you awake at night?" Asked in the December 3, 2007 interview in the Toronto Star, the question, seemingly intended to draw the Ontario securities regulator's thoughts regarding the problems of securities regulation in Canada, is met with the same "who me?" innocence that currently braces those responsible for investor protection in Canada.

Last week, the Toronto Star published a series of articles on market regulation. The diagnostic wasn't exactly flattering, to say the least. These series of articles made several observations, none the more compelling than a fact, well-known in the financial services community (not so much to the general public), that 30 separate organizations are involved in Canada's securities regulation. At a recent gathering in Toronto, David Wilson conceded, "In Canada securities fraud is especially challenging. There are more than 30 separate agencies involved. This could charitably be called the Canadian enforcement mosaic."

With more than 30 agencies balancing responsibility, it is easier for those involved to "pass the buck," making Wilson's answer all the more appropriate. Are regulatory failings the responsibility of the OSC [Yes!]? While the answer might seem obvious, with so many groups, it could easily be justified otherwise. Did an investment advisor churn your portfolio into oblivion? Yes, the OSC feels terrible, but please file your complaint with the IDA (Investment Dealers Association)? The IDA will feel terrible, but, for restitution, please log your complaint with the Ombudsman for Banking Services and Investment.

What keeps you awake at night? Perhaps the question would be best posed to the retail investor, who is more likely to be kept awake at night.

To read the articles that inspired this blog, click on the following links:
http://www.thestar.com/article/281879 -- OSC chief takes it all in stride
http://www.thestar.com/article/281645 -- Why the OSC so rarely gets its man