September 2025

Welcome to the September newsletter! This month, we cover a new process for returning funds to harmed investors, the push to strengthen Canada’s investor complaint handling and the need for stronger compliance. We also highlight the risks that come with advisors directing their commissions through unregistered corporations, the latest scams involving AI and deepfake technology, and the Canadian Public Accountability Board's enhanced whistleblower program. 

Getting Your Money Back: An Investor-First Approach

Return Ill-gotten Gains to Investors

At FAIR Canada, we believe that if you’ve lost money because of misconduct in the investment world, you deserve a fair chance to get it back. That’s why improving investor compensation is a key part of our advocacy.

The Ontario Securities Commission (OSC) has recently taken a promising step forward. It introduced a new framework that allows money collected from wrongdoers—through what’s called disgorgement orders—to be returned to harmed investors.

Here’s how it works: when someone breaks the rules and profits from it, the OSC can order them to give up those ill-gotten gains. Until now, that money stayed with the Commission. But under the new framework, the OSC will publish case details online and invite affected investors to submit claims for compensation. Investors will need to explain how much they lost in connection with the case and provide proof.

This is a significant improvement. But there’s a catch: the OSC can only return money it collects from the wrongdoer. And that's a problem. Between 2015 and 2024, the OSC ordered wrongdoers to disgorge about $266 million, but only collected about $21 million. That’s less than eight cents on the dollar.

We think that needs to change. FAIR Canada is calling on the Ontario government to give the OSC stronger powers to collect what’s owed. For example, by suspending the wrongdoer’s driver’s licence until they pay up. This would help ensure more money ends up where it belongs—in the pockets of harmed investors.

More money recovered means more justice for investors—and that’s a goal worth fighting for.

Making Complaint Handling Fairer for Investors

The OSC’s new framework for returning funds to harmed investors is a welcome step—but it’s just the beginning. At FAIR Canada, we’re continuing to push for deeper reforms that truly protect everyday investors.

One of our top priorities is giving the Ombudsman for Banking Services and Investments (OBSI) the power to make binding decisions. Right now, OBSI can recommend compensation when investors are wronged—but firms don’t have to follow those recommendations. That often leads to unfair, low-ball settlement offers that leave investors shortchanged.

The Canadian Securities Administrators (CSA) recently released a second proposal to give OBSI binding authority. We’ll be sharing our full response soon, so stay tuned.

In the meantime, we’re urging the CSA to move quickly to finalize the framework—and calling on governments to pass the legislation needed to make it law. Investors who’ve been harmed deserve real accountability and fair outcomes. We won’t stop advocating until that’s a reality.

Why Compliance Matters to You as an Investor

At FAIR Canada, we believe that strong rules and responsible behaviour are key to protecting investors. That’s why we regularly speak out on issues like advisor compensation and conflicts of interest. Recent findings from the OSC show that some firms and advisors are still falling short—and that’s a problem for you and your money. 

These aren’t just technical issues. They affect the quality of advice you receive and whether your interests are truly being put first. Here are two major concerns we think every investor should know about: 

Conflicts of Interest: Still a Problem 

Even though regulators have made the rules clear, some firms and advisors still don’t properly identify, manage, or disclose conflicts of interest. That means you could be getting advice that benefits your advisor more than it benefits you. 

For example, your advisor might recommend an investment that earns them a higher commission—even if it’s not the best option for you. 

A 2023 report from the CSA and CIRO found that of the examined firms : 

• Nearly two-thirds had inadequate policies and procedures.
• More than half provided missing or incomplete disclosure.
• One third failed to identify a material conflict of interest. 

That’s unacceptable. You deserve advice that puts your interests first. Advisors are legally required to disclose any significant conflict and act in your best interest—not theirs.

Directing Commission Through Unregistered Corporations: A Risk for Investors

FAIR Canada previously raised concerns about proposals to expand the ability of advisors to direct their commission for registrable activity to personal corporations. We are concerned this could reduce transparency, make it harder to hold advisors accountable, and exacerbate regulatory gaps without guaranteeing improved investor outcomes. 

The OSC recently conducted a compliance sweep and identified situations where compensation for registerable trading or advising activity was being paid to unregistered entities. This is not currently permitted.

Here’s why it matters: 

• It makes it harder for regulators to monitor misconduct. 
• It could allow advisors to dodge responsibility if something goes wrong. 
• It may leave investors with fewer options to recover losses. 

Our advice? Ask your advisor how they’re paid. Are they compensated directly by their firm, or through a separate company they own? You have the right to know. 

Investor protection only works when the rules are followed—and enforced. 

Watch Out for AI and Deepfake Scams

Fraudsters are using AI and deepfake technology to create fake videos and voices of trusted people, making scams harder to spot. The New Brunswick Financial and Consumer Services Commission has released new resources to help investors stay informed.

You can protect yourself by:

✔ Verifying identities independently.

✔ Checking advisor registration with your provincial regulator.

✔ Being skeptical of unsolicited offers—even if they look real.

Learn more here. 

CPAB Enhanced Whistleblower Program

Whistleblowers play a key role in exposing issues that could ultimately harm investors. The Canadian Public Accountability Board (CPAB) recently upgraded its whistleblower program to make it easier for people to report concerns about audit quality and potential wrongdoing.

Visit the CPAB Whistleblower website to learn more about the program and how it works.

Thank You for Your Input!

A big thank you to everyone who took the time to complete our FAIR Canada newsletter survey. Your input is invaluable. We’re reviewing your feedback and making adjustments to ensure our newsletter delivers the insights and resources you want most.

Stay tuned for updates. We’re excited to share what’s coming next!

Throughout the year, FAIR Canada (Canadian Foundation for the Advancement of Investor Rights) submits many comment letters on various important policy and regulatory matters that have an impact on investors. Read more about our investor advocacy work.

We’d Love to Hear From You!

Do you have feedback on our newsletter or suggestions for topics you’d like us to write about? Your input is valuable and will help us improve our newsletter content for loyal subscribers like you. Please email us at info@faircanada.ca with your comments and/or suggestions.

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To learn more about our advocacy for investors, visit FAIRCanada.ca