The Alberta Securities Commission says it is making some internal and staffing changes to improve the operation of the organization, and to help restore public confidence that may be in question in light of recent allegations by some ASC employees and former employees.

Peter Valentine, FCA and former provincial Auditor-General, who was appointed as Chair of ASC in May, announced the changes on June 9, along with his report to Deputy Premier and Minister of Finance Shirley McClellan regarding some allegations and accusations about the management and the operations of the ASC.

The Canadian Press reported that Ken Parker, director of capital markets for the ASC, and Patty Johnson, director of legal services, were both fired.

After thoroughly reviewing a number of documents and meeting with various staff members and other individuals associated with the ASC, Valentine said he found no evidence of any wrong-doing, illegal or immoral activity as claimed by some ASC employees and former employees, and subsequently reported through the news media.

Valentine noted there are some administrative matters that need to be dealt with to enhance the effectiveness of the ASC as an organization, but that the concerns raised in the news media by a few individuals who remain anonymous, are unfounded, and stem from internal issues and personal dynamics within the organization.

“In my opinion, a significant number of the individuals I have met and worked with at the ASC are highly talented and extremely capable individuals,” he said. “In fact, I am impressed with the depth of expertise embodied in the staff of Commission.”

Valentine added some staffing changes are being made that he believes are “vital to the health and future of the ASC, and that are, in my opinion, in the best interests of all involved.”


In addition, Valentine is taking action to review the organizational structure of the ASC, to review of policies and practices related to human resources, including hours of work, vacations, salaries, bonus programs, promotions and internal communications, and to put a plan in place to increase resources for ASC’s information technology infrastructure.

He is also establishing a peer, expert review process of the Commission’s enforcement program.

Valentine also restated ASC’s commitment to cooperate fully with the Auditor-General’s review after the concerns it outlined to the Auditor-General at the end of May 2005 as addressed. Specifically, ASC is seeking assurances that the Auditor-General will be not re-assessing or second-guessing any enforcement decisions as part of the process, and that the any information that is confidential to ASC, that is privileged, or that would cause any breaches under the Securities Act, will not be disclosed.