Blogs & Comment

Investor protection

The proposal for a national securities regulator without a head officeseems to be another manifestation of how security regulation is unlikely to ever live up to its promise of providing protection against financial abuse. Not only are regulators new or old likely to succumb to regulatory capture, but silly turf wars at the provincial level stand in the way of a coordinated approach.
Yet, all is not lost. There is stillclass action lawsuits as an instrument for reining in abuses within the financial sector, as highlighted by news todaythat a Quebec judge has given the victims of financial fraudster Earl Jones the go-ahead to file a class action lawsuit against RBC.
It is alleged a Montreal-area branch of the RBC was aware of irregularities in the Jones account but did nothing. It would be surprising, in the aftermath of the lawsuit, that RBC and other banks don’t do anything to amend their organizational procedures to ensure branch employees do not ignore future instances of victimization.